Take Home From The Collapse Of FTX Says CZ Binance
Couple of days ago CZ Binance announced he’s company’s intent of acquiring FTX which is a competitor exchange in same line Binance started as at yesterday selling off their FTT assets which has made the digital asset plummet in its market price. It’s has been recorded that the digital asset FTT over 50% plummet, yesterday CZ Binance went on twitter highlighting some lessons which form this which he said;
1: Never use a token you created as collateral.
2: Don’t borrow if you run a crypto business. Don’t use capital “efficiently”. Have a large reserve.”
Zhao says that Binance will release full breakdown on its reserves and he claims that Binance will never make use of BNB as collateral;
“All crypto exchanges should do merkle-tree proof-of-reserves. Banks run on fractional reserves. Crypto exchanges should not. Binance will start to do proof-of-reserves soon. Full transparency.”
Currently FTT is trading at $2.5 from trading at $25.
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