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CZ:FTX Going Down Is Not Good For Anyone In The Industry

Cointime Staff· 3 min read

In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.

Binancians,

Given the events that transpired over the last coupe of days. I want to reiterate a few points.

One, we did not master plan this or anything related to it. It was less than 24 hrs ago that SBF called me. And before that, I had very little knowledge of the internal state of things at FTX. I could do some mental calculations with our revenues and guess theirs, but it would never be very accurate. I was surprised when he wanted to talk. My first reaction was, he wants to do an OTC deal… But here we are.

Two, as the due diligence for the deal is on-going, I want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag. DO NOT buy or sell. As soon as I finished the call with SBF yesterday, I asked our team to stop selling as an organization. Yes, we have a bag. But that’s ok. More importantly, we need to hold ourselves to a higher standard than even in banks.

Three, obviously, do not comment on the deal, publicly or internally. If you are not directly involved, don’t ask. We have got a good team handling it. Things will play out.

Four, FTX going down is not good for anyone in the industry. Do not view it as a “win for us”. User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get. And people now think we are the biggest and will attack us more. But that’s OK, we are used to being open and leaning into headwinds. In fact, we embrace scrutiny. We must significantly increase our transparency, proof-of-reserves, insurance funds, etc. A lot more to come in this area. We have a lot of tough work ahead of us. Not to mention prices swinging wildly.

Five, speaking of prices. As I have said many times over the years, ignore the prices. Let’s keep our heads down and focus on building products people use. It has always worked over the years and today is obviously no exception.

Lastly. I want to say that I am really proud of each and every one of you, for all your hard work and as a team. Thank you! We still have many challenges ahead of us, lets continue to push ahead and help increase the freedom of money all around the world, steadily and consistently.

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