Binance Boss: We're Waiting For The Domino Effect Of The FTX Collapse

Not new, a liquidity crisis led to the collapse of the cryptocurrency exchange giant, followed by the abuse of the platform's users' assets and a failed acquisition deal with Binance.

Watcher News reports that John Ray III is the new CEO of FTX, while Sam will assist behind the scenes with the transition and bankruptcy filings.

This is another big case after the collapse of the Terra LUNA ecosystem which led to the collapse of the crypto market in the middle of the crypto winter. The FTX scandal also brought a sell-off in the crypto market as investor concerns continued to form.Binance Bosses Warn Domino Effect of FTX Collapse

Based on a Watcher News report, the Binance boss has warned that the collapse of the FTX could bring a domino effect to the crypto market.

Seeing how big FTX is and its influence in the crypto market, the domino effect of course begins with this crypto exchange, it can spread to other companies in the crypto industry.

Zhao has compared the current situation to the 2008 financial crisis, citing a “strong analogy” for the similarities between the two conditions.That said, the Binance boss also doesn't feel convinced that the FTX scandal is an isolated incident. This means that some crypto projects in the vicinity could experience the same thing, go bankrupt.

“…I think it [other companies] will take a few weeks for most of them to come out [bankrupt],” Zhao said.Zhao's view leads to a growing crisis of investor confidence, so it could have a negative impact on crypto businesses. It was the most anticipated as a domino effect.

However, Zhao assured that the fate of the crypto industry will not be determined by events such as the FTX scandal and collapse. According to him, the crypto market will rise by itself.