The crypto community on Twitter concluded that CZ was making a jab at FTX.
SBF said he would be willing to collaborate with the FDIC in the future.
When Binance’s CEO, Changpeng “CZ,” Zhao, heard about the widely publicized problem of trading jitters on other cryptocurrency exchanges, he expressed worry for traders. When an investor’s buy or sell order gets stalled and moves down the list, letting fresher trade orders get through, this is called a jitter in the cryptocurrency trading market.
The CEO tweeted:
“Just learned a new word, jitters. On 1 particular exchange, sometimes your orders will be stuck for a bit, and a few other orders will get in front of you. Apparently, this happens often enough on this exchange that the traders coined a term for it, jitters. (Front running)”
Fight the Bad Players
The crypto community on Twitter concluded that CZ was making a jab at FTX, a cryptocurrency exchange headed by Sam Bankman-Fried, despite the fact that CZ did not specifically name any exchange in his worries about jitters. In response to the community’s acceptance of ‘jitters’ as a normal response, CZ elaborated that “all of you guys knew and didn’t say anything. We need to fight the bad players.”
Additional contacts were made by CZ with Binance’s VIP traders, who reportedly verified their awareness of the illegal trading. When the Federal Deposit Insurance Corporation (FDIC) issued a stop and desist order to the exchange and four other crypto firms, the timing of the intimated claim against FTX was spot on.
Investors were allegedly misled by claims that goods offered by FTX US, SmartAssets, FDICCrypto, Cryptonews, and Cryptosec were covered by FDIC insurance. To slow the collapse, SBF said he would be willing to collaborate with the FDIC in the future while also repeating that “FTX US isn’t FDIC insured.”