Binance CEO CZ and Crypto.com CEO Kris Marszalek have been on public campaigns to differentiate their CEXes from FTX and to reassure their user bases.
CZ, Marszalek Continue Campaigns to Reassure Crypto Users
With the astonishing crash of Sam Bankman-Fried’s FTX empire still reverberating through the crypto industry, Binance CEO Changpeng Zhao (CZ) has been very vocal about the responsibilities of Centralized Exchanges (CEXes).
Following an AMA session Monday that coincided with a similar event featuring Crypto.com CEO Kris Marszalek, CZ posted on the Binance Blog detailing his “Six Commitments for Healthy Centralized Exchanges.”
“In light of what happened last week, I felt compelled to expand upon these principles with the six most important requirements that Binance and every other centralized exchange should adopt in order to ensure trust with our users. We cannot let a few bad actors sully the reputation of this industry when it’s still in its infancy,” CZ said.
He said the first role of a CEX is to protect users and their funds, aided by being transparent in their operations. CZ acknowledged that as the world’s largest CEX, Binance must lead by example.
The six commitments are as follows:
- Be risk averse with user funds
- Never use native tokens as collateral
- Share live proof of assets
- Keep strong reserves
- Avoid excessive leverage
- Strengthen and enforce security protocols
“We call on all other centralized exchanges to adopt these proposals, because we all have a responsibility to the people that decide to invest their hard earned money with us. The onus is on us to prove to regulators and the community that a few bad actors are not emblematic of this industry,” CZ said.
As CZ has been proposing new standards for crypto exchanges and attempting to differentiate Binance’s practices from FTX, Crypto.com CEO Kris Marszalek has similarly been trying to reassure his users and combat “FUD” about the condition of his CEX.
For example, Marsalek took to Twitter to state that it is “business as usual” for Crypto.com despite a sharp increase in user withdrawals.
Marszalek continues to reiterate that unlike FTX, Crypto.com maintains one-to-own reserves for users’ funds (plus additional capital) and that audited statements are forthcoming.
What is Binance:
Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.
Where to find Binance:
What is Crypto.com:
Crypto.com is a cryptocurrency exchange that was started operating in 2016. It has extended its reach to over 10 million users within 5 years. The platform was founded by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo, with its headquarters in Hong Kong. In addition to the cryptocurrency application, the platform also runs the Crypto.com Visa card, one of the world’s largest cryptocurrency card programs, the exchange, and a DeFi wallet. The exchange operates across 3 continents, the Americas, Europe, and Asia.
For more information about the project:
Source : bsc.news
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