“We have decided that we will not pursue a possible acquisition of FTX.” Less than a week has passed since Binance CEO Changpeng Zhao’s words, but the results are shaking the entire cryptocurrency market. Now the manager of the world’s largest stock exchange has the difficult role of keeping calm in the industry and preventing further panic.

“We need regulation.” In a recent interview, Zhao said, “As an industry, we need more transparency. We need to work with regulators around the world to make the industry more robust. Regulators have an important role to play, but we can’t blame anyone. That’s the “concrete part”.

The CEO of Binance, better known as CZ, is nowadays especially active on social media. He is one of the most influential figures in the crypto world and his vision can be understood as the unofficial position of the industry.

“Regulation and innovation are not mutually exclusive. Cryptocurrency investors deserve secure access to emerging technologies and applications, including NFTs, stablecoins, staking, yield mining and more,” Zhao said.

Fear of the magnitude of the cascading effect. “We’re going to see a gradual effect with FTX’s decline,” CZ said. “There will be negative consequences, especially for those with ties to the FTX ecosystem.”

FTX’s downfall isn’t the first cryptocurrency project to fail. The collapse of LUNA has been compared to the collapse of Lehman Brothers, but FTXs are more similar in economic scope. “We’ve gone back a few years,” CZ explains.

Binance creates a recovery fund. Cryptocurrencies are a decentralized system, but the role of stockbrokers is crucial to understanding the crypto industry. And here the responsibility falls on fewer actors. The largest and most active is Binance. After the collapse of FTX, Binance bailout fund announced for projects that may see their economic viability be affected by the drop in FTX.

A reserve equivalent to $70,000 million. Binance has announced its economic reserve for the sake of transparency. Namely, the currency reserves on which Binance management relies. In total, Binance has the equivalent of approximately $70,675 million distributed as dollars, ETH, Bitcoin, stablecoins and its own tokens.

Almost 40% are based on their own tokens. 22.92% of Binance’s reserves are in dollars, approximately 17.6 billion. They also hold strong reserves in established cryptocurrencies such as Ethereum or Bitcoin, at 10.22% and 8.97% respectively.

However, it is noteworthy that most of their reservations are based on their own platform. 32.99% is from Binance USD, a dollar-pegged stablecoin. Its value is approximately 21 billion dollars. An 8.60% stake, worth approximately $58 million, is held in Binance Coin, which has gained slightly in recent days.

Image | Stephen McCarthy/Web Summit

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