“It’s actually a great moment for us,” said Jeremy Allaire, CEO of crypto payments firm Circle. “We’re delivering real value, and those who are focused on building big casinos for speculative deals aren’t that happy.”
Binance runs essentially the same type of business as FTX, but CEO Zhao has recently been careful to differentiate himself from Bankman-Fried, saying his one-time competitor a liar And criticize FTX’s most dangerous practice. On November 25, Binance announced a new “Proof of Reserve System”, The promise is to keep users informed about the amount of cryptocurrency in their accounts and allay concerns that they could be vulnerable to the types of deposit runs that have undermined FTX. (But Binance has heavy plans critical because of lack Key Information. )
Coinbase also tried to allay fears of a crash, posting blog post That is, it always holds the same amount of money that the client has deposited. “Coinbase cannot afford a ‘bank run,'” the post said.
Still, some industry experts believe that the existence of big players like Binance, Coinbase, and FTX runs counter to the ideals of crypto.Since the FTX crash, some cryptocurrency enthusiasts have flock to A small company experimenting with decentralized finance that allows traders to borrow, lend and trade without banks or brokers, relying instead on publicly visible systems governed by code.
But DeFi has its own problems, including its vulnerability to hackers, who have squeezed billions of dollars out of experimental projects this year.
“They built it on clumsy technology that was very inefficient,” said Hilary Allen, a financial expert at American University. “They’re very fragile operationally.”
Scrutiny in Washington has also intensified. SEC Chairman Gary Gensler has vowed to hold cryptocurrency companies to account for violations of securities laws.House Financial Services Committee scheduled Hearing to be held on December 13 Check FTX for crashes.