In line with the meltdown of the FTX crypto marketplace in November, several top industry players like Ripple CEO Brad Garlinghouse, Cardano (ADA) founder Charles Hoskinson, Coinbase Chief Brain Armstrong, CZ Binance and Ethereum Co-founder Vitalik Buterin have shared their thoughts, revealing the corresponding setbacks the latest implosion case brings to the nascent space.

Ethereum Co-Founder Reacts on the FTX Collapse

Earlier this month, FTX exchange suffered liquidity crunches, which led to many other negative outcomes like the dumping of the FTT token while being a contributor to the overall crypto market turbulence. To add to the exchange’s woes, hackers infiltrated the crypto platform and stole funds amounting to about $380 million. In consequence, FTX exchange joined the list of crypto projects to file for bankruptcy including Three Arrows Capital (3AC), Celsius Network, and Voyager among others. 

Related: CZ Binance: “DO NOT Trade FTT Tokens. If You Have a Bag, You have a Bag. DO NOT Buy or Sell”

Reacting to this recent loss-inflicting incident that has caused a stir in the crypto market, Ethereum co-founder Vitalik Buterin stated that the FTX meltdown cuts deeper than the Terra blockchain collapse in May, as FTX did whitewash.

According to Buterin, other collapse cases like Terra (LUNC) and Mt Gox were not totally a surprise as they looked “sketchy”. Therefore, the FTX scenario is different given that the exchange whitewashed itself, completing full-on compliance virtue signaling.  

In a recent reply to a tweet that compared the FTX incident with the Mt Gox implosion that occurred in 2012, Vitalik Buterin wrote, “MtGox “looked” sketchy and never tried too hard to whitewash itself. Luna too. FTX was the opposite and did full-on compliance virtue signaling (not the same thing as compliance). The second kind of fraud cuts deeper than the first.”

MtGox "looked" sketchy and never tried too hard to whitewash itself. Luna too. FTX was the opposite and did full-on compliance virtue signaling (not the same thing as compliance)

The second kind of fraud cuts deeper than the first.

— vitalik.eth (@VitalikButerin) November 11, 2022

While some believe that rigid regulatory policies could emerge to the point of cracking down centralized crypto marketplaces following the FTX collapse and leaving only decentralized exchanges, the Ethereum creator stressed that centralized exchanges still bring some advantages to the table that DEXes do not. To him, CEX abstinence does not make complete sense although centralization has done a lot of havoc on crypto investors. 

In response to the user who tweeted the question regarding CEXes and DEXes, Buterin said, “the CEX vs DEX narrative misses a key issue, that the two are substitutes for some services (cross-crypto trading, custody, sometimes leverage) but CEXes also function as a fiat-crypto gateway and (what we call) DEXes don’t.”

Depends on the details. The "CEX vs DEX" narrative misses a key issue, that the two are substitutes for some services (cross-crypto trading, custody, sometimes leverage) but CEXes also function as a fiat-crypto gateway and (what we call) DEXes don't.

— vitalik.eth (@VitalikButerin) November 11, 2022

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The post Ethereum’s Vitalik Buterin: FTX Exchange Meltdown “Cuts Deeper” Than Terra (LUNA) Collapse appeared first on Times Tabloid.

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.

Read Also: Binance Not Slowing Down Investment Spree, Plans to Spend Over $1 Billion before the End of 2022

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.”

In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.https://t.co/IUNkPcLC8T pic.twitter.com/XGlIJB7EV5

— 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.

Read Also: Binance CEO: We Are Likely To See More Market Consolidation

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.

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The post CZ Binance: “DO NOT Trade FTT Tokens. If You Have a Bag, You have a Bag. DO NOT Buy or Sell” appeared first on Times Tabloid.