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How CZ dumped crypto market. And what is next

Crypto & Web3.0

How CZ dumped crypto market. And what is next

Perhaps Changpan Zhao is buying up as many crypto-assets as he can at low prices in such an aggressive fashion before the next bullish rally?

Binance is the #1 crypto exchange in the world. In terms of trading volume, it is 3-4 times higher than the following Coibase, Kraken, FTX combined.

Moreover, 3-year-old FTX is a special competitor for 5-year-old Binance, because:

  • FTX is led by Sam Bankman-Fried, a former student of Binance CEO Changpeng Zhao (known as CZ),
  • Sam Bankman-Fried advocates heavy regulation of the industry, unlike Zhao.

FTX’s rapid rise was rumored to be driven by risky asset collateral strategies, which Zhao probably knew about. On November 6th, he tweeted that Binance is getting rid of FTT, the token of the FTX exchange.

The FTT token has become the leader in the fall in price, and the users of the FTX exchange are rapidly withdrawing assets, Reuters writes about $ 6 billion. Soon there were reports that money could not be withdrawn from the FTX exchange. Panic has begun in the cryptocurrency markets.

The situation took an unexpected turn. FTX turned to Binance for help due to lack of liquidity. And Zhao tweeted that Binance will buy FTX.


The situation now

  • The FTT token has fallen in price by 80%. Probably Sam Bankman-Fried lost his $20 billion fortune.
  • CZ is the king of the crypto world. With one tweet, he can “kill” a competitor.
  • State regulators in Europe and the United States are monitoring the deal and threatening fines.
  • Against the backdrop of panic, bitcoin (and other cryptocurrencies) fell in price, setting a new low of the year.
  • During the panic on crypto exchanges, $700 million worth of participants’ positions were liquidated.

What’s next

  • no one is sure that the deal will take place. The main source of the latest up-to-date information relayed by the media is Zhao’s Twitter.
  • the bitcoin rate has frozen at the critical support of $18k, the lower line of the range in which BTC has been trading since mid-June 2022.

Further development of history unfavorable for the crypto world will mean a bearish breakdown of 18k support and the continuation of BTCUSD movement within the descending channel, which has been in effect since November 2021.

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Justin BNBier

Journalist. I am interested in Airdrops, new Gems, Giveaways, Free Stuff. Take your portfolio to the moon!

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