HomeCryptoChangpeng Zhao and Binance’s Top 5 Moments in Crypto 2022
Changpeng Zhao and Binance’s Top 5 Moments in Crypto 2022
December 29, 2022
Binance chief Changpeng ‘CZ’ Zhao became one of the last men standing at the top of cryptocurrencies in 2022, notching several notable victories in a year filled with nasty crashes and steep falls in cryptocurrency prices.
While 2022 has seen the collapse of several cryptocurrency companies, none more spectacular than the fall of FTX in a week, CZ seemed to emerge as an industry savior, jumping to the rescue of struggling companies to prove that cryptocurrency has the steam to pull it off long-term .
Consolidation of power after FTX fallout
Changpeng Zhao secured his place at the top of the cryptocurrency echelons by catalyzing the downfall of rival cryptocurrency exchange FTX. His former boss, Sam Bankman-Fried, now faces fraud charges in the United States
A damning financial report revealed that a large percentage of the assets of Alameda Research, a cryptocurrency hedge fund closely tied to FTX, consisted of FTX’s relatively illiquid FTT token.
CZ later tweeted that Binance would sell the FTT tokens it received from FTX after exiting its former shareholder position in FTX. This announcement sparked a bank run at FTX and was a turning point in uncovering serious financial irregularities at the exchange involving several executives, including Bankman-Fried.
The former FTX CEO faces two counts of wire fraud and six counts of conspiracy, including those related to money laundering and violating political campaign finance policies. He is reportedly down to his last $100,000, marking a spectacular fall from grace for someone Fortune once speculated could be the next Warren Buffett.
Binance supports $1 billion withdrawals following USDC FUD
Changpeng Zhao also showed that Binance could survive mass withdrawals after the exchange processed over $1 billion about two weeks ago.
Concerned customers started withdrawing assets from Binance after CZ announced a temporary suspension of USDC withdrawals until US banking partners open up. USDC is a stablecoin, a type of cryptocurrency whose value is pegged to a fiat currency through algorithms or asset reserves. Clients have withdrawn $1.14 billion worth of crypto assets over concerns that the exchange is holding assets in forms other than those deposited by clients.
At that time, Changpeng Zhao called the increase in “business as usual” withdrawals and recommended that exchanges undergo periodic stress tests to test their ability to process mass withdrawals.
Changpeng Zhao Strengthens Support for Struggling Crypto Firms
About two weeks after the FTX crash, CZ and Binance also launched a $1 billion Industry Recovery Fund to invest in crypto companies that “through no fault of their own, are facing significant short-term financial hardship.” The fund could expand to $2 billion, Binance said.
Several notable companies have contributed funds to the pool, including brands Jump Crypto, Aptos Labs, and Animoca. These participants can invest unilaterally or co-invest in distressed companies. The recovery fund could pave the way for cryptocurrency self-regulation if it remains sufficiently decentralized.
Controversial backup test report
When FTX crashed, CZ called for more transparency regarding an exchange’s crypto assets.
It later outpaced several rival exchanges by authorizing one of Merkle’s first proof-of-reserve audits to prove that Binance held client assets 1:1 and did not lend client funds like traditional banks. While the initial report covered BTC-related holdings, Binance said it would add more assets in the future. also CZ calls listened for future audits to include liabilities that would reveal the health of Binance’s balance sheet.
Although accounting firm Mazars said the report was an “agreed-of-policy” rather than an audit, it was still an important step toward setting industry standards for transparency.
Binance launches Ronaldo NFT collection at the top of the BNB charts
In line with the spirit of the 2022 FIFA World Cup, CZ recently famous Binance’s launch of an exclusive NFT collection commemorating the career of legendary soccer superstar Cristiano Ronaldo.
The collection includes several computer-generated statues depicting Ronaldo’s footballing exploits from the beginning of his career to the present. Sales of the Super Rare and Super Super Rare NFTs accounted for the highest seven-day transaction volume on the BNB chain in early November 2022.
Binance has defied the declining interest in NFT collections by marketing the Ronaldo collection through expensive TV ads aired in 74 countries during the 2022 FIFA World Cup. Falling cryptocurrency prices have caused cryptocurrency ad investments to drop dramatically since started the year when FTX, Coinbase and Crypto.com launched ads by the millions during the NFL’s annual Super Bowl event.
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