Binance boss Changpeng Zhao warns of a cascading cryptocrisy

According to Binance boss Changpeng Zhao, who warned that further companies could fail after the problems at FTX in the coming weeks, the market for digital assets worth a $ 1 trillion is faced with a crisis that resembles the financial crash from 2008.

ZHAO, founder of the world's largest stock exchange for digital assets, said that the full effects of the meltdown in the rivalry crypto exchange FTX can not yet be felt. At a conference in Indonesia, he said that the global financial crisis was "probably a precise analogy" on the events of this week.

"If FTX falls, we will see cascading effects," said Zhao. "Especially those who are close to the FTX ecosystem will be negatively affected."

The comments come, since crypto dealers fear further waves of infection after an offer from Zhao, FTX at the beginning of this week, broke apart, and was one of the best-known cryptocurrency exchanges on the edge of the collapse. His failure would also take a blow, including the risk capital company Sequoia and the Japanese Softbank.

Bitcoin, the largest cryptocurrency, has lost 17 percent in the past five days and has a two-year low in the middle of turbulent negotiations between Binance and FTX boss Sam Bankman-Fried.

Bankman-Fried apologized for the liquidity crisis at FTX, but did not report in detail about the causes.

"This lack of transparency is what every single dealer and investor will be very careful," said Anatoly Crachilov, Chief Executive by Nickel Digital Asset Management.

Zhao also doubted a deal made by FTX, assets from another crypto loan, Voyager, from the bankruptcy, and said, FTX "Obviously.

"Some other projects will be in similar situations. I think it will take a few weeks for most of them to come out," said Zhao.

Genesis, a large crypto trade company, said that his derivative business was stuck in about $ 175 million on the frozen stock exchange. The company said that the funds were "not significant for our business" and would not affect its market-making or trading functions.

But the bony boss was confident that the cryptos sector would recover at some point. "The market will heal itself," said Zhao.