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FTX / YouTube official
- The CEOs of two of the world’s biggest were both recently interviewed by The New York Times on everything from their personal stories to risk and regulation.
- Sam Bankman-Fried of FTX spoke about excessive leverage, moving his business from Hong Kong and why FTX has a branch only in the United States.
- Binance’s Changpeng Zhao discussed hyperactive crypto markets, risk and his “abundance mindset.”
- Sign up for our daily newsletter here, 10 things before the opening bell.
Sam Bankman-Fried and Changpeng Zhao have seen a whirlwind in recent years. The two founders of the crypto exchange – running FTX and Binance, respectively – emerged in a unique wave of crypto investing. And their exchanges were at the center of everything.
Bankman-Fried and Zhao were both recently interviewed by The New York Times on everything from their personal stories to risk and regulation.
Here are the eight best quotes from the interviews, slightly edited and condensed for clarity:
Sam Bankman-Fried on …
- How crypto exchanges differ from traditional exchanges: “In crypto, exchanges basically run the entire infrastructure. It’s every part of a set-up trade except the buyer and seller, whereas in traditional finance everything is managed by 12 different companies. “
- How to deal with excessive leverage: “It’s a bit of a double-edged sword. So there are a few exceptions to that, but with most trading there is a general consensus that maybe we should get rid of 100’s and 50’s and whatever goes over it. 10X. We would get consumer outcry if we got rid of it, and we would get really bad press. But it might be the right thing to do.
- If FTX is considering leaving Hong Kong: “We looked at it. The Monetary Authority of Singapore has been one of the most active regulators in terms of trying to create a regulatory and licensing framework. That being said, like almost all jurisdictions, Singapore has yet to rule out a comprehensive regulatory framework for crypto. “
- Why FTX has a separate branch just for Americans: “As we start to grow into more and more demographics, one of them is retail marketers, and there are huge amounts of retail influence in the United States. . And the other element is the institution. A lot of American institutions, historically, they ‘I haven’t traded crypto, but that’s starting to change. They all now have mandates to trade cryptos in one way or another. “
Changpeng Zhao on …
- How he dove into crypto: “In December 2013, I went to a conference in Las Vegas and bumped into Vitalik Buterin, one of the founders of Ethereum.… There was another guy who was quite influential. I was learning Ripple. He is came with a laptop to show me how it works, and in the process he transferred [$500 of Ripple’s token] XRP told me, “You can use it to teach the next guy.”
“So I was like, ‘Well, this is a pretty generous bunch of people. They are really not looking for the money. They really just want to teach. “Soon after, I quit my job, sold my house.”
- If he’s worried about hyperactive crypto markets: “We have an open democratic market, and the market is going to self-correct. Too many people are rushing. The prices are going to go up too high. And then some guys will want to cash in, take a profit. But nobody really knows. maybe the price is still too low now. So the market takes care of it. “
- How he thinks about risk: “The word risk means different things to different people. Some people say risk. Some people say opportunity.”
- How he sees his competitors: “I never see anyone as a competitor. If I have that mindset, everyone is my enemy, even very different companies. But I have an abundance mentality. I think most things in this world are not limited resources. Money is not. Business opportunities are not. And the crypto industry is not. “
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