By George Ward
Binance owner CZ recently held an AMA with his community members, allowing them to ask questions. During the session, the CEO expressed his opinion on the FTX crisis and measures to curb further damage.
CZ believes there’ll be headway as the incident encountered by the exchange platform serves to be a cleansing event that will eventually turn productive. He acknowledged the pain of losing potential customers but reassured them that there was hope for a total bounce back.
CZ Responds To Users’ Concern
In response to the question posed to him during the AMA session held on Twitter, the CEO connotes that Binance shouldn’t be held responsible for people’s choice of investment. CZ remarked that there’s a fine line between responsibility and users’ financial decisions.
CZ opined that blame should be apportioned on Sam Bankman-Fried for his negligence, fraudulent and criminal activities. Addressing Binance’s decision to invest with FTX, he revealed that his exchange invested and exited quite early before other investors.
The CEO stated that users who entered into an investment with FTX did so on their own accord without being led or under duress. He added that Binance is on no account responsible for insolvency and wouldn’t want to put its users through such stress.
He stressed the need to own up to faults if it fails. But, according to him, it is an attribute for success in all areas of life. While speaking to his community members, he pointed out that losing funds or assets is inevitable for all traders.
He added that professional investors could fall victim, but mapping out compensation plans due to FTX fallout is inaccurate.
Binance’s Exposure To FTX Collapse
The pressure seems not only on FTX as Binance CEO got asked about the withdrawal activities on his platform following the FTX collapse. However, the CEO assured listeners that it’s business as usual with his platform. He added that third-party platforms closely monitor the cold wallet of the exchange.
Regarding stablecoins, CZ explained that Binance isn’t responsible for issuing BUSD stablecoin. However, he revealed that BUSD is recoverable for fiat at Paxo if Binance encounters future challenges.
Furthermore, the CEO added that the BNB ecosystem is less affected by the FTX crisis and reiterated that the occurrence would only make the firm more robust and bring a positive result in the long term.