Binance CEO Might Have Shot Himself in the Foot

FTX has been burned to the ground, is Binance next?

Seriously, how did CZ think this was going to play out? After starting a bank run with the above tweet, nobody in their right mind can trust crypto markets. How can you convince someone who’s lost part (or all) of their savings? You can’t.

The Problem with CZ’s Move

Yes, the move was successful, but will anyone continue to trade crypto after this?

I have couple ideas why fewer will:

• Nobody has any money to spend
• Mistrust with crypto leaders and token creators
• Research about crypto will scare off new investors

First point is pretty self explanatory. If someone lost all the money in crypto due to FTX assets being worthless, they can’t invest in crypto. Serious investors could have no savings or worse be in debt. On the other hand, casual investors would have to be comfortable investing more than usual in a attempt to recover losses. Are people willing to believe they can profit from crypto trading, again?

Trust is incredibly difficult to regain. Generally, burnt bridges don’t get rebuilt, especially financial ones. Traders cannot have a positive outlook after witnessing the…