CZ says that Sam Bankman-Fried was a “master manipulator” and a “fraudster.”
• CZ believes that FTX’s collapse was caused by SBF stealing user funds.
• CZ denies any responsibility for the collapse of FTX, saying that no healthy business can be destroyed by a tweet.
• CZ believes that Caroline Ellison is at fault for the price plunge of FTT.
• CZ remains concerned about his public image and the way SBF has spoken about him.
CZ Changpeng Zhao
Changpeng Zhao, known as CZ and founder of the leading cryptocurrency exchange Binance, believes that FTX’s recent collapse was caused by their competitor SBF stealing user funds. CZ cites evidence that suggests FTX failed to properly protect its customers’ assets by failing to show sufficient transparency in terms of providing sound evidence for “sudden fund losses”. He further argues that SBF took advantage of the situation to capitalize and steal a large sum from FTX customers. CZ is calling on industry leaders and regulators to take action since such an incident poses a grave threat not only to investors but also to the industry as a whole. Unless strict regulations are implemented soon, these types of occurrences may become more frequent and have far-reaching consequences.
Sam Bankman-Fried (SBF) has been accused by CZ of being a “master manipulator and a fraudster”. Reports suggest that SBF could have been influential in promoting Bitcoin prices during the insane bull run of 2017. There have also been claims that SBF was exploiting the market by taking advantage of options trading irregularities and manipulating investor sentiment. His activities were said to have created huge financial losses for many investors and ruined reputations. While some believe him to be a master strategist, others argue that his tactics are little more than clever schemes created to pocket quick money.
Caroline Ellison also to blame
CZ believes that Caroline Ellison is primarily responsible for the dramatic price plunge of FTT due to her lack of understanding of the market. She seemed to be gambling recklessly with investor funds, and when they all started to sell off their stocks en masse, it resulted in a massive devaluation. Her inexperience meant she was unable to adjust quickly or accurately enough, which then snowballed into the significant losses experienced by all those who had initially trusted her decisions. Her poor choices and misjudgments have proven costly, and serve as yet another reminder of how crucial it is to play it safe when investing and deal only with those that are in the know of the market. A November 6 tweet where she offered to “happily” buy all of CZ’s FTT for $22 a token proved her inefficiency as a leader in crypto. “She gave her floor price away,” CZ said.
Zhao faces critique
Zhao has faced severe criticism recently regarding the collapse of the rival firm. In response, CZ has adamantly denied any wrongdoing and instead insists the company’s downfall was due to fragile foundations and leadership. According to Zhao no healthy business can be completely destroyed by a single tweet however controversial or unverified its content may be. These bold statements indicate CZ is adamant in his position that Binance had no part in contributing to FTX’s collapse and has instead taken an offensive approach toward defending itself from the numerous accusations being thrown around.
The Binance CEO, CZ, has expressed deep frustration with the narrative spun by Bankman-Fried regarding their relationship. In his words, it was meant to maintain an illusion of himself as a ‘hero’ and paint all others as ‘bad guys.’ CZ also pushed back on past comments from SBF that promoted a rivalry between the two crypto executives; CZ maintained that he does not focus on competitors since it serves no purpose. Nevertheless, current sentiment from CZ points to a great degree of resentment for Bankman-Fried’s public image maneuvering — making it clear that he will not be taken lightly if his reputation is put in danger.
The Final Word
What does become clear when looking at this controversy is that CZ remains worried about how he appears in public opinion following these events; especially given how SBF has spoken about him publicly. Moreover, there were already numerous people speaking out against CZ before any of this happened — making it even more important for him to maintain an air of respectability and professionalism going forward.
The crypto market can be a confusing place at the best of times, and recent events have only made things more complicated. On one hand, we have SBF accused of theft and manipulation — on the other hand, we have CZ pointing fingers at others involved in this scandal while also trying to protect his own reputation as much as possible. It remains unclear who is really to blame here, but one thing is certain; investors should always take caution when investing in any high-risk assets like cryptocurrency tokens!
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