Binance CEO Changpeng “CZ” Zhao on Wednesday admitted that the collapse of FTX “set the industry back a few years.” However, he remains bullish on the crypto market and claims the industry will recover quickly and become stronger.
Meanwhile, the crypto market seems to have likely recovered, with Bitcoin and Ethereum bouncing over 6% in the last 24 hours.
Binance CEO: Crypto Industry Will Recover Quickly
Some industry leaders have claimed the FTX collapse set the industry back by 4-5 years. Three Arrows Capital co-founder Zhu Su believes the impact of the FTX crisis could be seen for even longer periods — seven or eight years. He asserts that the collapse of big crypto companies could set the industry back by many years.
After his crypto-focused hedge fund Three Arrows Capital filed for bankruptcy in June, Zhu has been meeting regulators and cooperating with court-appointed liquidators. Currently, he stays in the United Arab Emirates amid its emergence as a major crypto hub. Zhu Su looks to start a trading company that invests in both crypto and traditional assets.
Binance CEO “CZ” has acknowledged with other industry leaders that the FTX crash sets the industry a few years back. However, he asserts it is natural and compares it to the failure of regulated TradFi in 2008, after over 70 years of development.
Binance CEO CZ believes the crypto market will recover quickly and become even stronger. He has announced an industry recovery fund to help projects facing liquidity issues. While not enough details are revealed about the fund, CZ confirmed that more information will be revealed this month.
“Some (including me) say this will “set the industry back a few years.” But thinking about it, this is natural. There will be failures with progress. Happened in regulated TradFi in 2008, after 70+ years of development. The industry will recover quickly, and become stronger.”
Crypto Market Recovery
The crypto markets recovered after whales started accumulating various crypto assets amid the dip. Ethereum whales scooped ETH worth $1 billion in a day, the fifth-largest single-day accumulation by whales until now. Whales 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 soars over 7%, with the price trading at $1,165.
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