CZ Says The Fall Of FTX Is Different From LUNA, FTX Is A Ponzi Scheme

Binance CEO CZ said that the demise of FTX was completely different from the demise of Luna. If Luna collapsed due to lax regulation, then FTX is a Ponzi scheme. He also predicts the market will recover next year.

Binance Founder Changpeng Zhao (CZ) discussed the future of crypto at the Binance Meet-up Athens 2022 on Friday. He compared the growth of the cryptocurrency ecosystem to the growth of the Internet over the past few decades.

CZ stated that he entered the market not for any particular cryptocurrency but to explore new technologies for currency creation. Binance is not really focused on profitability, but sustainable growth.

When asked about the demise of FTX, the Binance CEO said that the demise of FTX was completely different from the demise of Luna.

“The Terra Luna project was mismanaged like the Lehman brothers. The Luna founders did not walk away with lot of money after it collapsed. It fell like a chain of events in a domino effect.”

As for FTX, it is completely different because FTX management lied about not taking money from users, saying it was some kind of Ponzi scheme.

CZ said Binance is not really focused on profit making but inclined to sustainable growth. On the question of whether Bitcoin (BTC) will hit $1 million, he said, “anything can happen.” The potential size of a new market can not be compared with the size of an existing market, he added. The Binance CEO expects crypto market recovery in 2023 after the negative events that happened in 2022. The industry is now healthier compared to an year ago, he stated.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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