There’s plenty of fallout to talk about with the recent demise of FTX. Today, news that BlockFi could be the latest lender to seek bankruptcy protection is the catalyst that’s sending most tokens lower. For other crypto exchanges like Binance (BNB-USD), it’s been a mostly-red week as well.
Interestingly, BNB crypto has outperformed many of its peers over the past week. Binance announced it would set up a so-called rescue fund to protect against similar issues seen with FTX. Accordingly, the exchange’s coin has been more steady than one would otherwise think, given the contagion-related concerns in the sector right now.
Some experts aren’t buying it. In an interesting interview given during a panel at Abu Dhabi Finance Week, renowned economist Nouriel Roubini called out FTX and CEO Changpeng Zhao (or CZ) as having “no more credibility” than FTX CEO Sam Bankman-Fried, otherwise known as SBF.
Let’s dive more into what Roubini said about Binance and the future of crypto in general.
Is Binance Really All That Different From FTX?
When economist Nouriel Roubini speaks, many listen. That’s perhaps why his comments about CZ and the Binance team are so concerning to many in the crypto space.
In what appears to be a rather direct attack on Binance and the crypto space in general, Roubini suggests that more pain is likely to come. Accordingly, his view is investors should get out of the crypto sector.
Binance’s moves to seek a license to operate in the U.A.E., its regulatory bans in other markets such as the U.K. and its money laundering investigation in the U.S. are among the key reasons for this view. Roubini went as far as to list Changpeng Zhao among the “7 C’s” of crypto. The other six: Concealed, corrupt, crooks, criminals, con men and carnival barkers.
That’s not a great vote of confidence for the exchange.
While Binance remains the world’s largest exchange, it’s unclear just how systemic the issues we’ve seen play out in recent days are. Accordingly, this is a sector that could see higher volatility than usual (and that’s saying something.)
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.