dForce founder comments on exchanges competing: FTX's political influence exceeds Binance by tenfold, collaboration between the two is beneficial
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.
Table of Contents
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?"
excited to see him repping the industry in DC going forward!
uh, he is allowed to go to DC, right?
— SBF (@SBF_FTX) October 30, 2022
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.
Crypto 这个行业经历过最大交易所MTGox倒闭,经历过最大市场中国绞杀,经历过最大DeFi Luna暴雷,都屹立不倒。
一切如灭霸响指,响完照样万物重生,歌照唱,舞照跳。
灭霸又能如何?nothing is too big to fail pic.twitter.com/QKRcLSyjtJ
— Mindao (@mindaoyang) November 7, 2022