Binance-FTX saga will have ripple effect on regulation, hiring, confidence: Indian crypto founders
The proposed Binance-FTX deal is expected to have a global impact, including in India, with industry players Moneycontrol spoke with anticipating that the development will exacerbate the bear market and have an influence on regulation, hiring, and industry confidence.
Binance CEO Changpeng Zhao (CZ) and FTX CEO Samuel Bankman-Fried (SBF) announced on November 8 that Binance will acquire FTX to rescue it from a liquidity crunch, in one of the largest takeovers in the industry.
Moneycontrol spoke with crypto founders, retail investors, and industry experts to learn how this acquisition will affect the broader industry, which has been struggling with regulations, token volatility, and other issues since the beginning of the year.
“An unfortunate event, but projects who are building won't be affected. People will keep building. The market might behave as it did during Luna, but it will return. We might see investments slowing down (as it was already). Regulators will push more now, for sure,” said the founder of a Web3 firm requesting anonymity.
In recent months, global crypto firms have struggled with plummeting token prices and bankruptcies. In November 2021, the price of Bitcoin, the largest cryptocurrency in the world, reached an all-time high of $68,789. It is now trading at around $18,269.
In India, a mix of regulatory uncertainty, hefty taxation, and declining cryptocurrency prices have taken a toll on startups, exchanges, and companies in the sector.
“This was an unexpected event even for the industry insiders. This event will have a ripple effect and more skeletons will tumble out of the closet. More things are yet to come out. Secondly, this is going to push the bear market even further,” said Sharan Nair, Co-founder of
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