2 years ago
“1:1 reserves. Problems spell away.”
Early greeting words from the co-founder and CEO of Binance, Changpeng ‘CZ’ Zhao, arsenic helium responds to the ongoing situation successful the U.S. banking strategy — a situation that has present spawned contagion crossed the pond successful Europe, the U.K., and Switzerland.
CZ responds to banking situation contagion
After fears past week started to dispersed from distress to 3 U.S. banks, different banks person besides begun to amusement distress — prompting leaders successful crypto similar CZ to remark connected the ongoing situation.
On March 16, a consortium of Wall Street banks agreed to supply $30 cardinal to prop up First Republic slope aft fears started to dispersed that it was facing liquidity issues. The tally connected these and different banks person besides caused distress to different sectors of the system similar crypto.
On March 11, Circle, the institution down the stablecoin USDC, which holds 37$ cardinal successful full reserves, was forced to rise superior aft implicit $3 cardinal it held successful reserves was threatened by the Signature’s collapse.
In response, the Federal Deposit Insurance Department (FDIC) had to measurement successful to rescue the banks past play — prompting CZ and others to reiterate their tendency to spot exchanges regulated similar banks.
“2. don’t lend retired lawsuit wealth to marque money. fto VCs bash that.
3. nary revenue? complaint a transparent interest for your services, similar facilitating transactions (tx)
5. tx outgo excessively high? usage blockchain tech to little your costs.
Keep concern simple.”
Deliberately omitting 4 — the fig that has go synonymous with FUD astir Binance and CZ himself — CZ concluded the aboriginal greeting twitter thread with immoderate absorbing parting thoughts for the manufacture to consider.
The station CZ touts rules for securitization of integer assets successful caller tweet thread appeared archetypal connected CryptoSlate.
English (US) 