Former Binance CFO Predicts Long Crypto Winter Following FTX Failure

Zinger Key Points
  • Zhou Wei: Crypto winter will last a long time, regulations to tighten.
  • Ethereum value falls 23%, Bitcoin drops nearly 20% following FTX collapse

The crypto winter will go on for a long time and more stringent regulations are expected in the future, following the failure of FTX.

That's according to former Binance CFO Zhou Wei, who left the firm last year.

"Basically, we have to all brace ourselves for a pretty long winter in the crypto world,” Wei told the South China Morning Post

Also read: FTX Has Over $1B In Cash, New Management Working To Access, Consolidate Funds

Wei, currently the CEO of Coins.ph, a fiat and cryptocurrency mobile wallet in the Philippines that he purchased from Indonesian on-demand services juggernaut Gojek earlier this year, said, “it’s going to push everyone into a deeper bear market.”

Early in November, Binance CEO Changpeng Zhao, also known as “CZ” in the crypto industry, stated that his company would sell its approximately $530 million in FTX's native token FTT/USD.

FTX exchange was unable to handle the influx of withdrawal requests from FTX investors, which ultimately caused the exchange to go insolvent.

FTX was Binance's main adversary in the cryptocurrency exchange market prior to its collapse.

Since then, the value of Ethereum ETH/USD has fallen 23%, while the price of Bitcoin BTC/USD, the world’s largest digital asset by market capitalization, has fallen by almost 20%.

As of Thursday, FTX founder Sam Bankman-Fried is in the custody of the FBI, while former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal charges.

Next: Country Music Star Lee Brice Partners With Selfie.Live App To Create NFTs For Fans

Image: Pixabay

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Posted In: CryptocurrencyGovernmentNewsRegulationsTop StoriesMarketsAlameda ResearchBinanceCaroline EllisonChangpeng ZhaoCoins.phcrypto winterFBIFTXGary WangGoJekInsolventmarket capitalizationSam Bankman-FriedZhou Wei
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