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dForce founder comments on exchanges competing: FTX's political influence exceeds Binance by tenfold, collaboration between the two is beneficial

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dForce founder comments on exchanges competing: FTX

dForce founder Yang Mindao commented on the intensifying exchange competition, mentioning that FTX's political influence will be a great advantage for future compliance. This implies that FTX may not always be in its current predicament, and that cooperation between the two parties would be most beneficial for the crypto industry.

1. Different Strategies of Both Parties

Yang Mindao pointed out the different strategic routes of Binance and FTX:

Binance follows the populist route, serving the masses with full leverage and doing whatever is in demand. FTX, on the other hand, originates from a group of professional traders, taking the elite route. In the later stages, it leverages political influence like K Street, with SBF being one of the biggest donors to both parties in the U.S. midterm elections.

Note: K Street is a major thoroughfare in Washington, D.C., historically known for housing numerous think tanks and lobbying groups, hence becoming synonymous with lobbying in Washington.

2. FTX's Political Influence Far Exceeds Binance

Although Binance has ten times the number of users and profits compared to FTX, FTX's political influence in the U.S. surpasses Binance by more than tenfold. The ultimate compliance landing is likely to be very beneficial for FTX, which is also the main reason why the DeFi community recently expressed dissatisfaction with SBF's support for bills.

Yang Mindao pointed out that FTX Digital Markets Co-CEO Ryan Salame, at the end of October, mocked CZ together with SBF:

SBF: Very excited to see CZ representing the crypto industry pushing for policy development in Washington! Um, he's allowed to go in and out of Washington, right?

This implies, "I can freely go in and out of Washington D.C., can CZ?"

3. Collaboration between Both Parties is the Right Path

Wall Street has always sought political shelter, and similarly, SBF believes that the crypto market needs to go through a process from Mainstreet to K Street.

In conclusion, Yang Mindao summarized that it would be most beneficial for the crypto industry if the two parties finally shake hands and combine Mainstreet with K Street, as constant bickering will not be effective. He is also not concerned about whether this potential crisis of runs will impact the market.