There was a big problem, we can say there is an elephant in the room, with the crypto market even though people refrained from talking about it. The collapse of FTX was triggered and lots of rich people lost their money, especially in the U.S.
That little trigger was initiated by CZ when Binance announced that they were worried about their investment in the FTT token and initiated a cycle of fear, uncertainty, and doubt on the second biggest exchange and the most competitive rival for Binance. Of course, the collapse of FTX was not a good thing for the crypto ecosystem and Binance was directly affected by the crash, as well.
Since that time, the market has slightly been going down and losing its value. Though the crime was obvious, the criminal was around. Obviously, SBF was not the killer, rather, it was the target who was not innocent, either.
Someone to Pay for It
This is not surprising to see that Binance will not be the dominant exchange or leading brand of crypto in the next bull market. The fund managers, the regulators, policymakers, and even some minority groups of crypto enthusiasts were bothered by the power of Binance on the ecosystem.
Among several possible solutions, which were either hard or semi-hard, I think the fine for illegal actions to Binance is one of the bearable ones for the exchange.
Initially, the exchange will pay $1.8B and this is not a big money for the exchange considering the power and the position of Binance. It is still leading the market and until a strong rival pops up, their realm will continue in the short term.
While there are several months to pay, Binance will not be bothered by that. Even more, there might be an emergency fund for that.
For the rest of the fine, there is no certain time to pay for it. I believe this can be extended to up to 4 - 5 years. Still, when we focus on the steady growth of the crypto ecosystem, that is not something that may affect the exchange negatively. Lastly, we do not need to talk about the personal fee for CZ, it is purely nothing for him.
Brand New Binance to Come
I think the growth department will set their game plan based on a brand new Binance that is impeccably transparent, user and regulator friendly. The connection between Binance and the U.S. government will be stronger with this agreement.
There will be a CEO who will not be like a crypto hero as we are used to seeing with CZ. As of the change, we will see a helpful and informative person who only talks about what Binance has achieved in its operations all around the world.
This can be good for Binance to scaffold their user base and start recovering from the negativity of the past. Opening a new page with Binance's come back might be good for the ecosystem, as well.
While the rivalry between CEX's and DEX's level up, the exchanges will do their best to keep the veteran users on their sides. Yet, the interest in DEXs may outperform the hard work of CEXs, as well. While the future is pretty uncertain, the operations and strategies of Binance become more important.
What do you think about the sacrifice of the CEO and Binance's penalty? Share your ideas below 👇