Changpeng Zhao, the CEO of Binance, the largest crypto exchange by trading volume, has recently warned the Binance team globally to steer clear of FTX exchange’s native token, FTT.
In a recent tweet shared to clarify the circumstances surrounding the acquisition of the FTX exchange, Binance CEO captioned the screenshot of the note sent to the Binance team across the world.
CZ Binance wrote, “In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.”
— CZ 🔶 Binance (@cz_binance) November 9, 2022
In the note, Zhao explained that the move to acquire FTX exchange was not preplanned. He said it all started less than 24 hours ago after a call from Sam Bankman Fried (SBF), the founder of FTX exchange.
Changpeng Zhao noted:
“Given the events that transpired over the last couple of days. I want to reiterate a few points.
“One, we did not master plan this or anything related to it. It was less than 24 hrs ago that SBF called me. And before that, had very little knowledge of the internal state of things at FTX. I could do some mental calculations with our revenues to guess theirs, but it would never be very accurate. I was surprised when he wanted to talk. My first reaction was, he wants to do an OTC deal… But here we are.”
Stop Trading FTT Tokens
In the note, CZ said although due diligence for the mega deal is ongoing, crypto traders and investors should avoid FTT tokens at the moment. He said those who have a bag of FTT tokens should hold them still.
“Two, as the due diligence for the deal is on-going, want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag. DO NOT buy or sell. As soon as I finished the call with SBF yesterday, asked our team to stop selling as an organization. Yes, we have a bag. But that’s ok. More importantly, we need to hold ourselves to a higher standard than even in banks.”
The Binance CEO also warned his team not to comment on the deal under any circumstances. He also warned them not to see this as a win for Binance because the FTX collapse is bad news for everyone in the industry.
Speaking about the aftermath of this unfortunate occurrence, CZ said:
“User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get. And people now think we are the biggest and will attack us more. But that’s OK, we are used to being open and leaning into headwinds, In fact, we embrace scrutiny. We must significantly increase our transparency, proof-of-reserves, insurance funds, etc. A lot more to come in this area. We have a lot of tough work ahead of us. Not to mention prices swinging wildly.”
Ignore the Prices, Keep Building
In his fifth point, Zhao urged his teams across the world to ignore the current situation in the market and focus on building products with vast utilities for people. He said this strategy has always worked over the years and it will also work today.