While speaking at a recent conference in Indonesia, the CEO Binance Changpeng Zhao drew parallels between the turmoil cryptocurrency ongoing and the 2008 financial crisis, according to Financial Times.
Changpeng Zhao, CEO Binance
Zhao predicts that the industry will have to deal with the cascading effects of the collapse FTX. He believes that some projects cryptocurrency may get into serious trouble and it may take several weeks to “recover”.
As reported last night, FTX filed for Chapter 11 bankruptcy in a U.S. court after failing to raise additional funds.
The FTX platform is currently being compared to the well-known investment bank Lehman Brothers, whose staggering collapse sparked the 2008 financial crisis. big to crash.
Former BitMEX exchange CEO Arthur Hayes recently warned that the broader crypto market will fall victim to the incident. Hayes also pointed out that it took the stock market several months to bottom out after the Lehman disaster, which suggests that the cryptocurrency will not recover quickly.
The collapse of the world's third largest cryptocurrency exchange is expected to push crypto investors out of the crypto space while attracting regulatory scrutiny from major lawmakers. never happend.
Zhao believes that the crypto sector will eventually be able to recover, but he did not specify how long it might take. After the crash of FTX, the Binance exchange became the target of hundreds of thousands of legal arrows.