Lessons from the tragedy of FTX
Tragedy with the cryptocurrency market
The crisis of FTX – America’s largest cryptocurrency exchange is at the center of crypto market recently. Just last Wednesday, the fate of FTX seemed to have been saved with the buyback deal of Binance, but today, this hope has been shattered. The reason is because the difference between FTX’s debt and assets can be up to 6 billion USD.
In addition, U.S. government regulators are investigating whether FTX made a mistake in managing clients’ funds. Not only that, an issue of concern is the relationship between FTX and other companies in founder Sam Bankman-Fried’s crypto empire, including the investment fund Almeda Research.
This unexpected curtain down caused the fate of the world’s second largest cryptocurrency exchange and customers to fall into a dark situation. More than that, this raises concerns about the risk scenario spreading to the entire Blockchain industry.
Following the announcement of Binance’s refusal to buy back FTX, Bitcoin plummeted below the $16,000 mark for the first time since 2020.
Transparency is enhanced after the FTX incident
One of the reasons why FTX is in a state of crisis today is concerns about the exchange using users’ deposits for the wrong purposes. The incident caused the global crypto community to immediately question the transparency of the operations of crypto exchanges.
Faced with the above situation, Binance CEO Changpeng Zhao (CZ) has just called on crypto exchanges to provide proof of customer deposit management.
The solution offered by the CEO of Binance is to avoid a similar situation as FTX. In response to CZ’s words, Ben Zhou – CEO of Bybit, the world’s third most visited cryptocurrency exchange, confirmed that soon to provide proof of the openness and transparency of assets of electronic exchanges. .
“The industry as a whole has a duty and an obligation to do what’s best for customers. Bybit has always been a leader in the field and offers the highest level of fund safety and security. We can do even better,” shared Bybit CEO to reassure users.
According to experts, part of the reason for the collapse of the FTX exchange was the participation in risky ventures with the assets of customers.
Therefore, in a move to reassure users, Ben Zhou – CEO of the world’s third largest exchange emphasized Bybit’s stance towards customer assets, which is not to use them for any purpose. other. “Bybit ensures all user assets are stored independently, always available on demand and without delay,” said Ben Zhui.
Immediately after Ben Zhou’s statement, many leading crypto exchanges such as OKX, Huobi, Kucoin … also announced that they are preparing to make public and transparent the wallets that are storing customer assets. This move is seen as a move by exchanges to ensure that they do not fall in the footsteps of FTX.
In a recent share, Ben Zhou said that the recent crypto market volatility is a wake-up call for the entire industry. This incident has reminded exchanges of the importance of user trust. Keeping customers’ trust should be a top priority for every exchange.