The difference in thinking between the two leading billionaires in the industry cryptocurrency at the present time exploded on the evening of 07/07.
The current “liquidity crisis” in the market cryptocurrency is causing many organizations to "stand still" for fear of being associated with Three Arrows Capital (3AC) - investment funds cryptocurrency defaulted and had to declare bankruptcy. Meanwhile, the unaffected units also wondered whether they should come out to help the market or not.
As is known, the character who has "rescued" the market in the past time is billionaire Sam Bankman-Fried through the companies he manages, including the FTX exchange and the fund. Alameda Research. Specifically, FTX loaned BlockFi $400 million, while Alameda loaned Voyager $485 million. Mr. Bankman-Fried vowed to do so to prevent a chain collapse in the market, but acknowledged more companies would go bankrupt and is said to have refused to help. Celsius for the foundation lending This is a loss of up to 2 billion USD.
Although the general sentiment of the crypto community is to praise Sam Bankman-Fried's "rescue" action, there are mixed opinions that the billionaire is taking the opportunity to "acquire" the industry. crypto through acquisition agreements, while helping American companies to "score" in the eyes of managers.
On the other hand, Binance CEO Changpeng Zhao stated that not every struggling crypto company deserves to be "rescued", even though Binance receives between 50-100 offers a day. CZ even posted a blog post arguing that projects with unsustainable business models deserve to collapse and the exchange will not come to the rescue.
Conflict between the two sides "exploded" in the evening of July 7 through a series of conversations on Twitter.
The first "shot" was Binance CEO Changpeng Zhao, who commented "swirly" on Sam Bankman-Fried's side about Voyager's company filing for bankruptcy despite being pumped by Alameda, and then revealed that Alameda was also in the process. owes Voyager money.
So, 3AC owes Voyager a few 100m, went bust. FTX/Alameda gives 3AC $100m, but didn't save it.— CZ Binance (@cz_binance) July 7, 2022
Alameda invests in Voyager, then takes a $377 million loan from Voyager… ok…
V went bust. FTX didn't “bail them out” or return the money?
hard to follow?https://t.co/yx6RJjVZrB
“So 3AC owed Voyager several hundred million dollars, then went bankrupt. FTX/Alameda lends money to 3AC, but can't save it.
Alameda then invested in Voyager, then borrowed $377 million from Voyager…ok…
Voyager went bankrupt. So does FTX "rescue" them or repay the debt?
Does anyone feel as confused as chives soup?”
CZ also shared a text message with an unidentified person he wrote was "well known in the industry" on June 12. Accordingly, the CEO of Binance refused to ask for a loan of 120 million USD despite being committed to mortgage 4 billion USD of assets and pay interest in full. Mr. Changpeng Zhao affirmed that Binance will not risk deals with such large amounts of money.
Have you or binance ever been approached to participate in these loans?— Abdul (@0x_Abdul) July 7, 2022
Seems like most big crypto entities are involved, directly or directly
Sam Bankman-Fried's side immediately responded on Twitter:
always happy for people to take an interest in helping the industry (less so if it's just pretending) but kinda wish some of them would bother asking their legal team how bankruptcy works first… Or, you know, reach out to ask for clarifications. I'm always happy to inform!— SBF (@SBF_FTX) July 7, 2022
“It's nice to see someone willing to help the market (even if they pretend to be), but I wish they'd go and ask their legal team how the actual bankruptcy process works… or at least contact to confirm the clear information. I am always ready to answer them.”
This is the latest development of the “enmity” between Binance and FTX, which has been going on since 2019. In November of that year, Binance sued FTX for alleged manipulation attacks, demanding $150 million in compensation. A month later, the two reconciled and cooperated, whereby Binance invested in shares of FTX. CEO CZ's platform also lists FTX's leveraged token product.
However, just a few months later, Binance delisted these tokens for “protecting the interests of users”, only to create its own leveraged product shortly after. By mid-2021, FTX bought back all of Binance's shares in the exchange, officially ending the relationship between the two parties.
Since then, CZ and SBF have not appeared together at any events or even taken any pictures together.
The fortunes of the two crypto billionaires have also dropped significantly after two months of the cryptocurrency market plunge. According to the statistics of Bloomberg As of June 13, while Sam Bankman-Fried's assets decreased by 41% from $15.1 billion in November 2021 to only $8.9 billion, Changpeng Zhao's assets have "evaporated" to 80% from 95.8 billion USD to only 10.2 billion USD.