Binance’s CEO: There Might Be a Cascading Crisis in Crypto Industry Due to FTX
According to Changpeng Zhao, CEO of crypto exchange Binance, the current situation in the cryptocurrency industry echoes the financial crisis of 2008, and more companies may fail in the coming weeks.
He has suggested at a conference in Indonesia that the market has yet to feel the effects of the crisis of the FTX crypto exchange and its associated Alameda Research.
He has added:
“With the fall of FTX, we will see cascading effects. Those close to the ecosystem will be especially affected.”
Journalist Colin Wu thinks in a similar way after the FTX Group filed for insolvency. According to him, the projects and tokens in which the Sam Bankman-Fried’s exchange and Alameda Research invested were at risk.
In spite of the pessimistic forecast, the head of Binance believes the industry will eventually recover.
