Crypto doesn’t need a savior

Changpeng Zhao (CZ), CEO of Binance, has called out what he refers to as “false narratives.” He has rebuked portrayals of him by some in society as ‘the savior of the crypt’.

The collapse of FTX sent a shock wave through the crypto industry. Uncertainty remains about the future of crypto, especially as victims of the FTX contagion continue to fall like dominoes.

The turmoil pushed Bitcoin well below the $18,000 price level, leaving questions about the viability and soundness of large centralized exchanges like Binance. During this debacle, Binance CEO Changpeng (CZ) Zhao increased his media presence, and some market participants even began to regard him as the “savior of crypto.”

But does crypto really need a savior, even in these times of turmoil?

FTX contagion effects

The FTX contagion put giants like Digital Currency Group (DCG) in trouble. DCG-owned lending arm Genesis is trying to stave off bankruptcy. At the same time, another exchange, BlockFi, filed for bankruptcy, and other exchanges stopped withdrawals.

There have also been redundancies throughout the industry so that companies can survive the bear market.

FTX was a rising contender to challenge the dominance of Binance. However, with the collapse of FTX, Binance is one of the few major players in the industry.

Binance has recorded a market share of 77% of all centralized exchange (CEX) volumes.

Changpeng Zhao, The Savior?

Zhao announced a $1 billion industry recovery fund to avoid the overlapping effects of FTX and help strong projects that are in a liquidity crisis.

While some criticized Changpeng Zhao for being “self-serving and monopolizing the market for his own benefit”, others refer to him as a saviour.

In a Twitter thread pointing out some “false narratives,” CZ mentioned that crypto doesn’t need to be stored while adding “that’s the beauty of decentralization.”

However, some community members pointed out that no one considers him a savior, and he is no different than Sam Bankman-Fried. Many say it is hypocritical for Changpeng Zhao, who runs a centralized crypto exchange, to praise decentralization. Others seem fine with it and want the CEO to do it embrace the role of savior.

Does crypto need a savior?

Since its inception, Bitcoin has gone through many trials and tribulations. Over the years, the price of BTC has corrected above and below 80% in the bear markets of 2013, 2017 and 2020. Mt. Gox, one of the first crypto exchanges, went bankrupt after being hacked in 2014, and 650,000 Bitcoins were lost. This resulted in the first major crypto bear market.

There were several crypto bans from China in 2017, causing the market to crash from $20,000 to $3,000. Similarly, a flash crash occurred due to the COVID-19 pandemic in 2020. Bitcoin has been declared dead almost 500 times due to such market crashes.

The last bear market in 2022 has been a little different. Several collapses of over-leveraged stock exchanges and poor global macroeconomic conditions are the main reasons this time. But over the years, crypto has survived and emerged stronger from each crypto winter.

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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

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