Binance CEO Changpeng “CZ” Zhao on Wednesday admitted that the collapse of FTX “set the industry back several years”. However, he remains bullish on the crypto market and claims that the industry will quickly recover and become stronger.
Meanwhile, the cryptocurrency market appears to have recovered, with Bitcoin and Ethereum jumping more than 6% in the last 24 hours.
Binance CEO: Crypto industry will recover quickly
Some industry leaders claim that the FTX collapse set the industry back 4-5 years. Three Arrows Capital co-founder Zhu Su believes that the effects of the FTX crisis can be seen even longer – seven or eight years. He argues that the collapse of large cryptocurrency companies could set the industry back many years.
After his crypto hedge fund Three Arrows Capital filed for bankruptcy in June, Zhu met with regulators and worked with court-appointed liquidators. It is currently based in the United Arab Emirates amid their transformation into a major crypto hub. Zhu Su wants to start a trading company that invests in both cryptocurrencies and traditional assets.
Binance CEO “CZ” acknowledged along with other industry leaders that the FTX crash set the industry back several years. However, he argues that this is natural and compares it to the failure of regulated TradFi in 2008, after over 70 years of development.
The CEO of Binance CZ believes that the cryptocurrency market will quickly recover and become even stronger. He announced the creation of an industry recovery fund to help projects facing liquidity problems. While not enough details about the fund have been revealed, CZ confirmed that more information will be revealed this month.
“Some (myself included) say it will ‘set the industry back a few years’. But if you think about it, it’s natural. There will be setbacks with progress. Happened in regulated TradFi in 2008, after 70+ years of development. The industry will quickly recover and become stronger.”
Recovery of the crypto market
Cryptocurrency markets rebounded after whales began hoarding various crypto assets amid the fall. Ethereum whales have been collecting $1 billion worth of ETH in a day, which has so far been the fifth largest accumulation of whales in a single day. Whales have also bought Bitcoin, BNB, XRP, Shiba Inu, Dogecoin, Litecoin, Chainlink, etc.
Bitcoin price is trading at $16,559, up over 6% in the last 24 hours. Whereas Ethereum is skyrocketing over 7% with the price trading at $1165.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not bear any responsibility for your personal financial losses.