“The cryptocurrency industry will be fine.” The optimistic assessment comes from the head of the world’s largest crypto exchange, who even recommends a recovery fund to help industry participants.
“We want the strong players to protect the good players who may have just been hurt in the short term,” Binance CEO Changpeng Zhao told CNBC in an interview at Abu Dhabi Finance Week.
“That doesn’t mean we can save everyone. If a project is mismanaged on multiple fronts, we won’t be able to help anyway.”
Zhao said that cryptocurrencies have “demonstrated exceptional resilience”, suggesting that he does not expect the recent turbulence in the industry to cause long-term damage. He did not specify the size of the recovery fund.
His comments come just a week after Binance backed out of a deal to rescue rival exchange FTX, which declared bankruptcy on Friday.
The price of bitcoin fell below $17,000 for the first time since 2020 and there are concerns that the so-called “crypto contagion” could force losses for other big names in the industry, such as Crypto.com. The company’s CEO denied the claims and said the platform is “operating as normal”.
“In the short term there is a lot of pain, but in the long term this all accelerates the efforts we are making to make this industry healthier,” Zhao said.
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