The collapse of FTX has cost the Crypto industry billions of dollars. However, one question that keeps arising relative to the incident is this: is it better for users to hold their assets or for centralized platforms to do so for users?
At an AMA with crypto users on Twitter, CZ, the CEO of Binance, explained that the DeFi industry will grow bigger if users can hold their assets more securely, and there will be no need for CEXs. However, the infrastructure needed to make this happen are not fully available, and we are yet to educate users about how crypto truly works.
Responding to a question on how CMC (CoinMarketCap) can publicly display Proof of Reserve of various crypto platforms, the CEO said that while caution is needed when sharing such data with the public, it is a good idea that can start with each platform making it public via press releases. For CMC to create a dashboard for that, we’ll need about 30% of all exchanges to agree to that and provide their data.
All users on FTX cannot be compensated
Furthermore, CZ answered a question on if Binance will return the money they took away from FTX by saying that Binance will not because they invested like every other investor and had to exit when they deemed fit. “Sam lied to employees, users, and regulators,” he said, and so should be held responsible for what happened with FTX.
On compensation, CZ said not all users on FTX can be compensated, and Web3 users should also learn how to take responsibility for protecting their assets.
Replying to an inquiry on Binance’s stand with the US and other global political matters by Jason Brett, former U.S. Regulator with the FDIC, the Binance Chief revealed that the company is interested in serving the world by providing tools that will help users access crypto services. With a workforce around the world, 90% remote workers, we are not interested in politics but in helping people.
He also noted that while the recent happenings will bring short-term pain, blockchain and crypto are not going away. ‘’To deal with problems around the industry, we expect to see a global industry association that will help oversee what happens in the crypto space,’’ CZ added.