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CZ of Binance Shares Two Lessons From The FTX Situation, Saying They Will Publish Proof-Of-Reserves Soon
11/9/2022

Per CoinTelegraph

Binance CEO Changpeng Zhao, or CZ, shares "two big lessons" to learn about the FTX saga.

  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.

Before the lessons, CZ said that banks run on fractional reserves and that this shouldn't be the case with crypto exchanges.

The CEO then announced that Binance will do "proof-of-reserves" soon, promising full transparency.

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