In the wake of the FTX tragedy, Binance CEO Changpeng Zhao (CZ) has been very committed to making crypto more secure and transparent. While some now see him as a savior, others accuse him of being a hypocritical deceiver. But the question arises: Does crypto even need a savior?
The collapse of FTX shocked the crypto industry. What remains, apart from the devastating economic damage, is primarily uncertainty about the industry’s future. Meanwhile, the victims of the FTX cascade continue to fall like dominoes. Only Binance CEO Changpeng Zhao (CZ) is adamant and seems to be single-handedly saving crypto with his initiatives.
The turmoil resulting from recent events not only pushed Bitcoin well below the $18,000 price level, but even raised questions about the transparency and solvency of major centralized exchanges, such as Binance. In the midst of this debacle, CZ increased its media exposure and took various steps to limit the damage. Some market participants then began to regard him as the savior of cryptocurrency.
But even in such turbulent times, the question arises: does crypto really need a savior?
The effects of the FTX infection
The FTX contagion got even giants like Digital Currency Group (DCG) in trouble. For example, the group’s lender, Genesis, is currently trying to stave off bankruptcy. The BlockFi exchange, on the other hand, was no longer able to do this, and other exchanges already stopped payouts.
To get through these trying times, companies across the industry began laying off employees.
At first it seemed that a successful upcoming exchange FTX would challenge Binance’s dominance, but instead the latter now enjoys a kind of monopoly.
With a market share of 77% of trading volume for all centralized exchanges (CEX), Binance’s power is undeniable.
Is Binance CEO the savior of all cryptocurrencies?
CZ founded a rescue fund for ailing crypto companies and contributed $1 billion. This fund aims to help limit the contagion from the FTX tragedy and offer a way out for strong projects in liquidity crises.
While some have criticized CZ saying he is selfish and monopolizing the market for his own benefit, others call him a savior.
In a Twitter thread, he addressed some of what he believed to be false narratives, arguing that crypto doesn’t need to be stored, adding:
“That’s the beauty of decentralization.”
To which some members of the community responded that no one considers him a savior and that he is no different than Sam Bankman-Fried. Many viewed his praise of decentralization as hypocritical since he also runs a centralized exchange. Others did not seem bothered by this, on the contrary: they wanted the CEO to play the role of savior.
Does crypto need a savior?
Since its inception, Bitcoin has overcome many challenges. In the bear markets of 2013, 2017 and 2020, the price of bitcoin corrected more than 80% at times. In 2014, Mt. Gox, one of the first crypto exchanges, went bankrupt as a result of a hack, resulting in a loss of 650,000 Bitcoin and the first major crypto bear market.
In 2017, the Chinese government issued several crypto bans that caused the price to drop from $20,000 to $3,000. And the 2020 COVID-19 pandemic also caused a sudden crash. Due to such market crashes, Bitcoin has been declared dead almost 500 times.
The 2022 bear market may be a little different: Multiple collapses of overleveraged stock markets and poor global macroeconomic conditions are the main reasons this time. Yet over the years, Bitcoin has survived every crypto winter and come back stronger than ever. Why should it be different this time?
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