A heated argument broke out between two of the most powerful men in the industry, which is now putting the entire cryptocurrency market under stress. There is already talk of a proxy conflict between the United States and China.
Sharp remarks on Twitter are usually a prerogative Elon Musk, the founder of Tesla and the new head of the social networking platform. However, there are two other billionaires wielding verbal swords in SMS, keeping the crypto landscape in suspense.
Thick air reigned for a few days in between Sam Bankman friedcalled SBF for short, and Changpeng Zhao, known to many by his initials CZ. The two heavyweight cryptocurrencies traded blows that escalated into open warfare over the weekend. Meanwhile, the dispute between the two giants affected the entire cryptocurrency market.
Changpeng Zhao (photo: Binance Youtube Channel)
In some cases, the dispute is also amplified as a crypto battle between the US and China. The CZ-Canadian Chinese entrepreneur is the head of the world’s largest exchange Binance, while the American prodigy SBF is the poster child for cryptocurrency trading firm Alameda Research and Crypto Exchange FTX, which has skyrocketed in popularity over the past couple of years.
How solid are Alameda and FTX?
The dispute arose last week due to a report that a large portion of Alameda’s balance sheet was made up of the relatively illiquid FTX token FTT and Solana’s token consists. Since then, the market has been concerned about the liquidity of FTX. The cryptocurrency exchange has also faced a huge influx of stablecoins, with $451 million withdrawn from the main platform in the past week.
Specifically, Binance CEO CZ announced that the company had made the decision FTX cryptocurrency, FTT tokenSelling is now sending shock waves in the market. Zhao made it clear on Twitter last Sunday that, among other things, his exchange will divest its FTT holdings for “risk management” reasons. Binance is a former investor in FTX and as of November 7 had approximately $580 million in FTT tokens.
SBF strikes back
Sometimes, CZ seemed too the potential risks From Alameda and FTX with the Luna crash, which sent the cryptocurrency market into a rapid slide in the spring. SBF again Shot on Monday He said that Binance is trying to “attack” its rival with “false rumors”.
Sam Bankman-Fried (Photo: Youtube Channel FTX)
However, investors are concerned that large FTT sell orders could cause the token’s price to crash, which could also affect FTX’s financial health. FTX CEO Bankman-Fried felt compelled to announce on Twitter early Monday that the exchange was far from bankrupt. However, in the past 24 hours, the value of the token has dropped by more than 20 percent.
But the whole story has an initial skirmish. Some of Bankman-Fried’s previous comments about Binance reportedly upset Zhao. While the 30-year-old American has been hailed in part as the savior of the digital currency industry this summer and has repeatedly spoken out in Washington for stronger regulation of cryptocurrencies, Binance has been the subject of investigations by US regulators and the SEC, among others.
In an interview in July 2021, the SBF responded, among other things, to a question about regulatory difficulties facing Binance by confirming that FTX is cooperating with the regulatory authorities. And in October, he mocked CZ on Twitter, asking if Zhao would be allowed to travel to Washington, D.C. At the beginning of the week, delete this tweet.
What types of stocks will generate the highest returns in the near future?
Small and medium caps
No posts at all