Binance CEO shares ‘two big lessons’ after FTX’s liquidity crunch

With FTX positively on fire, Binance CEO Changpeng "CZ" Zhao has come out and shared his views on the recent liquidity crunch at crypto exchange FTX. CZ tweeted on November 8, offering two key lessons crypto trading companies can learn from the downfall of the rival exchange. Two big lessons: 1: Never use a token you created as collateral. 2: Don't borrow if you run a crypto business. Don't use capital "efficiently". Have a large reserve. Binance has never used BNB for collateral, and we have never taken on debt. Stay #SAFU. — CZ Binance (@cz_binance) November 8, 2022 For those out of the loop, FTX has been hit by liquidity issues after a Nov. 6 tweet from Zhao saying Binance would be liquidating its holdings of FTX Token following "recent revelations".  The result of this walkout? Most quantifiably, FTX's native token FTT is down by over 90% as of the time of this writing. Binance CEO Changpeng Zhao, known as CZ, wrote in a tweet to his more than 7 million followers that he expects FTT to be "highly volatile in the coming days as things develop." Read the full story here on Cointelegraph. With the downfall of FTX, it's more important than ever that traders have access to tools designed for navigating volatile markets.  Stay ahead of the trends with Markets Pro (data powered by The Tie) the world's fastest, most complete crypto research platform, used by over 100 of the world's largest hedge funds to time the crypto market with stunning accuracy. Russell DeCorte Director Markets Pro © 2022 COINTELEGRAPH MARKETS PRO COINFIDENTIAL. Copyright © 2022 Cointelegraph Markets Pro, All rights reserved. You are receiving this email because you opted in at our website. Our mailing address is: Cointelegraph Markets Pro 21 W 46th St New York, NY 10036-4119 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.