A few days ago, I wrote “Warren Buffett lent money to Goldman Sachs in the valley of the 2007-2008 great recession and calmed markets”. When Binance pulled out of the FTX acquisition deal, I noted that the crypto world desperately needed its Warren Buffet: “Indeed, FTX is largely a yoyo company and cannot meet its obligations, and if that happens, the domino effect will be the first Great Crypto Recession with no saviours on sight.”
To avoid recession after the FTX collapse, which is causing havoc for Binance and others, Binance now wants to bailout, not really FTX, but some entities in the industry. It is setting up an ‘Industry Recovery Fund’.
But note this, Warren Buffett did not save the banks during the great recession; it was the government which did. But Buffett provided a quasi-bridge which supported the government’s playbook. Indeed, besides this Industry Recovery Fund, Binance and its peers should march to the Securities & Exchange Commission (SEC) and say: “Please regulate the cryptocurrency industry. We need help”.
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The most important pending innovation in the crypto industry is US government regulation. If that happens, many good things will take shape.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ ? Binance (@cz_binance) November 14, 2022
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When young boys who never really worked start playing Kalu kalu with people’s pensions and life savings…
The same way a government cannot allow you to commit suicide, even when it’s your own life; so government must get involved in crypto. When people’s money disappears, the burden will still be on the government.
You cannot equate or compare sleep with death, too dangerous.