Cryptocurrency

Binance and FTX CEO’s Go Head to Head for All To See

In a “discussion” that would almost never happen between TradFi institutions, at least not publicly.

Cryptocurrency

Binance and FTX CEO’s Go Head to Head for All To See

In a “discussion” that would almost never happen between TradFi institutions, at least not publicly.

Whether defined as an argument, fight, or “discussion,” as Binance CEO Changpeng Zhao (CZ) puts it, the tweet exchange between himself and FTX CEO Sam Bankman-Fried (SBF) has become a topic of great interest to Crypto Twitter.

Starting over the weekend, as CZ shared Binance would be liquidating its entire FTT position, its competitor’s native token, due to “recent revelations.”

Since the announcement, the two have shared several tweets directed at one another, some with more colorful phrasing than others, and all of which would be extremely rare to see in the world of traditional finance — at least not publicly.

The Sell-Off

According to a tweet from CZ, the liquidation was “due to recent revelations that have come to light,” he went on to share that it was standard practice and was not a move against a competitor but rather a way of insulating itself from a publicly failing project.

Further speculation around the reasoning has been traced to the criticism SBF received from the public as he proposed DeFi regulations that many felt conflicted with the core principles of decentralization — including various identification (KYC) implementations and more.

Though after receiving negative feedback from the broad crypto community and Erik Voorhees breaking apart the CEO’s stance in a now-viral Bankless episode, the young billionaire has committed to revising his regulatory proposal and position.

For All to See

Despite various banks and financial institutions being competitors, they seem to grasp the fact that they all survive in one ecosystem, and that any brash public actions might in turn affect the industry as a whole.

While CZ says that his tweets with SBF were just a “discussion,” it might not come off that way to outsiders looking in and is a definite contrast to the way competitors operate in traditional finance.

The Binance CEO also said his communications were for the sake of transparency, however, some of those communications included language like, “we gave support before, but we won’t pretend to make love after divorce.”

The Results

Both founders have said they want to continue building in multiple tweets and SBF went as far as to say he’d love it if he and CZ could work together “for the ecosystem.”

Although, according to a tweet from the Binance CEO, the exchange currently has no plans to swap or sell its remaining FTT directly to FTX but will instead keep it on the free market.

Following the “discussion” between the two, FTX’s native token FTT fell to lows of $15.4 USD from a weekly local high of nearly $26 USD prior. Additionally, as of November 7, over $451 million USD has been moved off of the FTX platform, according to data from Nansen.

While the tweets between SBF and CZ have undoubtedly had an impact on retail traders’ decisions to remove funds, it is important to note that there is currently speculation and rumors surrounding possible insolvency. Though Bankman-Fried and his platform have said these are unsubstantiated.

Going forward, it is hopeful that lessons can be learned from these discussions and perhaps despite the importance of transparency, there might still be a consideration for private dialog before sharing publicly.

Especially when hundreds of millions of dollars, the well-being of retail traders, and entire ecosystems hang in the balance.

In other news, could Nifty Gateway’s “blocklisting” be a possible solution in the heated creator royalty debate?

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