$2 Trillion Rout
The crypto industry remains mired in a deep downturn after a $2 trillion rout in digital assets over the past year. The slide has been pockmarked with a series of blowups of which FTX, once valued at $32 billion, was perhaps the most damaging.
FTX’s wipeout is an event Zhao may have himself helped accelerate with a Nov. 6 tweet about plans to sell a $530 million holding of FTX’s native digital token.
Zhao—also known as CZ—has been trying to restore confidence in the industry. Last month he vowed to set up a recovery fund of up to $2 billion to help promising crypto startups facing a liquidity squeeze. He’s also said that Binance U.S. is planning to revive its bid for the assets of bankrupt lender Voyager Digital.
Binance has cemented its position as the biggest crypto exchange in the wreckage of FTX’s Nov. 11 bankruptcy. Its daily average trading volume in the first week of December was over eight times greater that of runner-up Coinbase Global Inc.. The comparable figure in the last week of October was about seven times. That’s based on calculations on data from digital-asset information provider Kaiko.
However, publicly traded Coinbase has been less impacted by customers withdrawing crypto, recording a $546 million net outflow in the past week and a small inflow over the last 24 hours, Nansen data show.
This article was provided by Bloomberg News.