Crypto Firm Binance wants to prove that it won’t end like FTX


Chenpgeng Zhao looks sideways in front of the wall reading

Binance CEO Chengpeng Zhao is doing his best to make his cryptocurrency firm look more legitimate than its failed rival FTX.
Image: PATRICIA DE MELO MOREIRA/AFP (Getty Images)

The FTX failureWith one of the world’s most popular and admired cryptocurrency exchanges proving to be a huge smokescreen for an immeasurably mismanaged company, every crypto company is doing its best to try to look as legitimate as possible on Sunday. Now cryptocurrency experts are going over each other to prove that they are indeed the most legit transaction around. “They are Could be a Ponzi schemebut we are not, we swear.”

Chenpeng Zhao, CEO of Binance, informed about it live Q&A “On Monday, they will run a ‘proof of stock’ system, later on,” he said.full transparency.” This system is supported by Vitalik Buterin, the co-founder of the Ethereum network and one of the main minds behind getting ETH over the hump. “proof-of-work” system to “proof-of-stake”.

Zhao called this “proof-of-stake” function a cryptographic method for storing and detecting reserves. This “mathematical way to prove that your balance is in your tree of balances” uses the Merkle Tree algorithm, a very standard structure in blockchain and cryptocurrency technology used to verify data stored in a kind of data tree. This is more confirmation of what Zhao is based on mentioned in his tweet last week, FTX was falling apart at the seams right after a rival exchange (partly a good deal because Zhao FTX’s native token dropped FTT).

Zhao, who often goes by CZ, explained in the Q&A that a third-party auditor would normally be involved in his exchange process, but that the auditors are probably “busy” at the moment as they audit FTX stocks. Binance has released a “snapshot” of all its cold and hot wallets taken on November 10, hoping to appear transparent during this new wave of cryptocurrency criticism.

Merkle trees are not new. They were first patented in 1979 and are one of the common technological concepts that keep the crypto world going, even if the crypto phenomenon seems shakier than ever. Zhao even added that such cryptographic transparency systems already exist and have for years, so how different Buteri’s side project really is is still TBD.

On the other hand, Buterin remained silent when Binance proposed to be the new “guinea pig”. Zhao offered a vague timeframe for the new feature of “a few weeks.”

Meanwhile, Zhao also said that they created a kind of “industrial recovery fund.” Tron cryptocurrency creator Justin Sun is also reportedly involved. according to CoinDeskCZ said at the B20 Summit in Indonesia that they should create some kind of “global industrial association”.

Figuring out which players are legitimate and worth being in such an association, and which are not, can be more difficult than in any other industry. FTX may be the big name right now because of how far the strong have fallen, but other major exchanges have room to show that they are not far behind. Crypto.com, the people who once made celebrities whisper “fortune favors the brave“after the claim, an increase in the appeals to the ears of football fans was observed they accidentally sent $400 million worth of ether to another exchange, Gate.io, before asking them all back. Some critics openly wondered if this exchange was used to create Gate.io seems more financially stable in his spare proof showcase.

Crypto.com CEO Mike Marszalek said in a statement AMA on YouTube they had no resources in FTX and they are financially stable. That hasn’t stopped analysts and journalists from pointing out that a full fifth of Crypto.com’s holdings consist of the highly volatile joke coin Shiba Inu Coin. This was reported by Crypto.com CoinDesk Since Shiba Inu and Elon Musk’s beloved Dogecoin have “extremely high market caps,” they’d obviously like to have some reserves for its heavy SHIB users.

Everything any of these exchanges can do to keep users on the platform, any decent skepticism claims, is “FUD”, AKA “fear, uncertainty and doubt”.

FTX’s now former CEO is Sam Bankman-Fried always slowly Including FTX and crypto-funding firm Alameda Research, they are trying to offer a full explanation from their side of what happened to the mess of their properties.

Nobody wants to look like FTXespecially given how much clout SBF and its firms had before all the roofing came along falls on their heads. The Financial Times said on Saturday that most of the firm’s assets are not so easily traded, AKA illiquid, or was otherwise cheap and/or worthless cryptocurrencies. It also had hidden and poorly labeled accounts balance sheet it points to gross mismanagement and apparently deliberately incompetent financial decision-making.





Source link