The crypto market is trying to pick up the pieces after being plunged into deep turmoil last week when the third-largest crypto exchange FTX filed for bankruptcy.
Changpeng ‘CZ’ Zhao, CEO of the largest crypto exchange Binance, said on Twitter on Monday that “it is clear that people are very aggressive, interested and somewhat worried.” “I want to say, it’s a short-term pain. But I think this is good for the industry in the long run.”
Zhao acknowledged that many people lost money recently and many still have money tied up in FTX, so “there will be pain.” But the market conditions indicated that the line should be improved.
“The industry is not going away and other strong industry players are now stronger,” he said.
Last week, several crypto exchanges, including Binance, Crypto.com, KuCoin and OKX, said they would begin publishing proofs in an effort to reassure customers and investors that their funds are safe due to the FTX crash. Last week, Zhao emphasized the importance of transparency. Tweeting“All crypto exchanges must implement Merkle-tree authentication-pending.”
Proof of Proof (PoR) are independent audits by third parties that aim to provide transparency and evidence that a custodian owns the assets claimed by their clients.
These exchanges join other crypto businesses such as Gemini, BitGo, and Paxos, to name a few, that have used PoR to validate billions of dollars in value over the years, ChainLink co-founder Sergey Nazarov told TechCrunch on Friday.
“Now we’re increasing transparency in the industry, increasing security in the industry, and increasing relationships with regulators around the world,” Zhao said today. “Five years from now, when we look back at this, I think the industry will be stronger.”