The year 2022 for the crypto industry has been filled with a lot of troubles ranging from hacks, crashes and rugs, such as the Terra implosion, FTX collapse, to Celsius, to the Ronin Bridge and AAX exchange disappearance. These events have caused the industry loss in billions of dollars as well as loss in confidence from users around the world.
Speaking about the situation of the industry, Gleb Kostarev, Binance Asia Regional Director, at the Istanbul Blockchain Week, said that as several crypto projects cease to exist, better ones will be launched with time. The Binance Asian Director noted that the bull and bear market is part of the circular pattern of the crypto market.
Crypto and Binance in Turkey
When asked about the crypto market in Turkey and what Binance is doing about the region, Gleb said that Turkey holds one of the most active crypto communities in the world, and this is driven by the young population in the country, internet penetration, and economic factors affecting the national currency.
He also revealed that Binance Turkey which started two years ago by providing Turks with services to buy crypto from their banks, is growing to include more diverse services. Binance is more than an exchange as we have Binance Labs for investing, CoinMarketCap, Trust Wallet, and BNB Chain, Gleb added. “Our focus is to help the industry grow.”
Gleb added that he’s hopeful that regulations coming into the Turkish crypto space will help bring more users into the ecosystem, allow permission to global liquidity, encourage innovation as well as protect users with tools such as KYC.
Binance, FTX, industry recovery funds, and proof of Reserve
Binance was recently involved in a projected buy out of FTX before the Sam Bankman-fried founded organization went bankrupt. However, Binance halted the move due to irregularities in the financials of the firm as well as bad management of customers’ funds.
The impact of the FTX has affected a lot of other crypto businesses such as BlockFi, Nestcoin etc with more likely to be revealed. In response to the cascading effect in the industry, Binance initiated a recovery fund to help good crypto projects survive and thrive.
Another move made by Binance to drive sanity into the industry and help to prevent FTX type of impact again was making the Proof of Reserve a norm in the industry where users could see the amount of assets any crypto exchange has at each time. Vitalik Buterin of Ethereum has also shown interest in developing a tool to help make proof of reserve easy to implement.
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