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Exchange Leaderboard Showdown: CZ Jokes About Supporting Elon's Twitter, SBF Gets Asked About Crashing

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Exchange Leaderboard Showdown: CZ Jokes About Supporting Elon

Two major exchanges' poster boys: Binance's Zhao Changpeng and FTX's SBF have had different fortunes recently. One enjoys interviews in the limelight due to the acquisition of Twitter, while the other faces continuous criticism from industry insiders due to regulatory issues in the past.

CZ Talks About Supporting Musk's Twitter

Elon Musk's acquisition of Twitter has led to a continuous surge in the price of Dogecoin (DOGE), a coin favored by Musk. As a minor shareholder who invested $500 million, Binance Coin (BNB) has also been on a hot streak, reaching a historic high against Bitcoin. CZ, the founder Zhao Changpeng, stated in an interview with CNBC that he would support Musk's leadership of Twitter and expressed anticipation for the application of cryptocurrencies in cross-border payments. CZ believes that Twitter could potentially become a Super App similar to WeChat, encompassing features such as payment, social interaction, and various applications.

SBF Questioned on System Failure

SBF has called for the establishment of a blacklist system, advocating for exchanges to cooperate in regulatory efforts such as OFAC sanctions in exchange for a legitimate path for crypto activities. The concepts of "total freedom" and "regulatory protection" are inevitably in conflict. Choosing to cooperate in combating illegal activities may be key to avoiding a showdown with regulators. However, many prominent DeFi developers and crypto personalities on Twitter do not agree with SBF's idea of compromising with the government, believing that he is acting in the interests of FTX and helping the passage of the DCCPA bill.

Recently, when questioned during an interview, SBF was asked about the need for comprehensive KYC legislation if someone uses email to contact terrorists, contrasting it with the necessity of KYC for DeFi protocols. He appeared to be caught in a conflicting thought process and could not provide a complete answer as to why the case of email communication should be different from that of DeFi.

Prior to this, many individuals, including the author of Bankless, developer banteg, and crypto personality mewny, have criticized SBF's actions. The media outlet Rekt even went as far as to mock him with the title "SBF – THE REGULATOR," suggesting ulterior motives and provoking an angry response from SBF.

The CEO of Coinbase, in a lengthy statement, expressed support for the discussion initiated by SBF. However, he cautioned SBF on three points:
1. Is there a reasonable standard for implementing a blacklist?
2. Not all OFAC sanctions are fair; speaking out against injustice is necessary when encountered
3. DeFi protocols are not subject to banking secrecy laws; they only consider the relationship between intermediaries and clients. DeFi protocols should remain free and open.

The Coinbase CEO believes that although the DCCPA bill is imminent, it will undoubtedly set back the DeFi ecosystem. The regulatory mistakes made, such as the Bitlicense in New York, should not be repeated.

Struggles of Exchange Founders in the Limelight

Nevertheless, founders of the two major exchanges are working hard on different issues within the cryptocurrency industry. Binance has faced regulatory crises in the past, traveling worldwide to ensure compliance, while FTX is actively collaborating with celebrities in the US and entering the halls of Congress to expand adoption and compliance. However, for now, the spotlight seems to have temporarily shifted back to Binance.