Changpeng Zhao (CZ), the CEO of Binance, has called out what he refers to as ‘wrong narratives.’ He has rebuked portrayals of him by some in the community as the ‘savior of crypto.’
The collapse of FTX sent a shockwave through the crypto industry. Uncertainties remain about the future of crypto, especially when victims of the FTX contagion continue to tumble like dominoes.
The turmoil pushed Bitcoin well below the $18,000 price level, leaving questions about the viability and solvency of major centralized exchanges like Binance. During this debacle, Binance CEO Changpeng (CZ) Zhao increased his media presence, and some market participants even started to consider him the ‘savior of crypto.’
But does crypto really need a savior, even in these times of turmoil?
FTX Contagion Impacts
The FTX contagion put giants like the Digital Currency Group (DCG) in trouble. The DCG-owned lending arm, Genesis, is trying to keep bankruptcy at bay. At the same time, another exchange, BlockFi, filed for bankruptcy, and other exchanges halted withdrawals.
There have also been industry-wide layoffs so that companies could survive the bear market.
FTX was a rising competitor to challenge the dominance of Binance. But, with the collapse of FTX, Binance is one of the few big players in the industry.
Binance has recorded a 77% market share of all the centralized exchange (CEX) volumes.
Changpeng Zhao, the Savior?
Zhao announced a $1 billion industry recovery fund to avoid the cascading effects of FTX and help strong projects that are in a liquidity crunch.
While some criticized Changpeng Zhao for being “self-serving and monopolizing the market for his own benefit,” others refer to him as a savior.
In a Twitter thread pointing out some ‘wrongful narratives,’ CZ mentioned that crypto does not need saving while adding, ‘that’s the beauty of decentralization.’
However, some community members pointed out that no one considers him a savior, and he is no different than Sam Bankman-Fried. Many say it’s hypocritical for Changpeng Zhao, who runs a centralized crypto exchange, to praise decentralization. Others seem fine with it and wish for the CEO to embrace the role of savior.
Does Crypto Need a Savior?
Since its inception, Bitcoin has gone through many trials and tribulations. Over the years, the price of BTC has corrected above and below 80% in the 2013, 2017, and 2020 bear markets. Mt. Gox, one of the first crypto exchanges, went bankrupt after being hacked in 2014, and 650,000 Bitcoin were lost. This resulted in the first major crypto bear market.
There were multiple crypto bans from China in 2017, causing the market to crash from $20,000 to $3,000. Similarly, a flash crash occurred due to the COVID-19 pandemic in 2020. Bitcoin has been declared dead nearly 500 times due to such market crashes.
The recent 2022 bear market has been slightly different. Multiple collapses of over-leveraged exchanges and poor global macroeconomic conditions are the primary causes this time around. But, over the years, crypto has survived and come out stronger from every crypto winter.
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