Binance is seeking to form a “global industry association” for the crypto sector and function as a “guinea pig” for Vitalik Buterin’s Proof-of-Reserves protocol.
Binance CEO Changpeng Zhao stated the firm hasn’t suffered from FTX. During an AMA on Twitter Spaces, CZ answered hot questions from users and community leaders.
CZ claimed four or five funds approached Binance about the potential FTX recovery fund. The CEO stated the fund is still being worked on but gave no details.
CZ said it would do anything it can to assist the sector recovery, but not at the cost of its own consumers. “Binance doesn’t have to pay for industry events. I won’t say Binance will fix everything.”
The market crisis hasn’t hurt Binance’s enterprises. CZ cited Trust Wallet, a self-custodial crypto wallet Binance bought, as an example of how its acquisitions stay autonomous from its primary business.
CZ reported no effects on Binance’s primary operations. CZ highlighted that an increase in withdrawals is usual when bitcoin values plummet. Binance wouldn’t be affected if withdrawals are spiked.
Binance’s company wouldn’t be harmed if users withdrew money in masse. Binance will continue reporting its reserves. CZ said he was willing to make Binance the guinea pig for Vitalik Buterin’s Proof-of-Reserve protocol and grant live access to the exchange’s reserves.
Binance Turkey and other Binance-branded exchanges will announce their reserves soon, CZ added. He closed the AMA by claiming FTX’s market turmoil is good for the industry. Despite short-term losses, more openness and education regarding self-custody will improve the sector long-term.
Binance will create a worldwide crypto industry organization to improve the sector. The organization will create and promote industry best practices and operate as a regulator hub.
CZ said that Binance won’t administer the organization directly and rather a different firm would. “Multiple regulators” wanted such an agency, CZ said.
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