Interview with Justin Sun: SBF announces bankruptcy reorganization is like "pulling the plug"! Genesis may also be in trouble

Huobi Exchange, with nearly 10 years of development history, held a brand upgrade launch event in Singapore on the 22nd. In addition to rebranding and discussing future development directions, Sun Yuchen also expressed his views on the FTX incident, stating that SBF mishandled the situation and Genesis may also face consequences.

Rebranding of "Huobi" to "Firecoin" and Expansion of Global Business

During the conference, Sun Yuchen, the global consultant of the company, personally announced the change of the Chinese brand name from "Firecoin" to "Firecoin" and the English brand name from "Huobi Global" to "Huobi." The slogan "Firecoin must be on fire, return to the top three" was used to demonstrate the determination to expand global business.

After the brand upgrade, Firecoin announced that it would use the platform token HT as the core of its business strategy and expand its business in the encrypted area. At the same time, it will also expand investments in Southeast Asia, Europe, and other regions, aiming to make Firecoin the center of the industry's virtual assets.

The Impact of FTX on the Blockchain Industry

During the conference, Sun Yuchen also expressed his views on the FTX incident, stating that the industry needs self-rescue to restore external confidence and claiming that the industry's actual leverage is lower than traditional finance. He mentioned that besides FTX, Genesis and related institutions have used excessive leverage, while most exchanges insist on 100% margin.

"Since the events of LUNA and 3AC, the industry has already gone through a round of deleveraging. FTX may be the last round of deleveraging for centralized institutions in recent times," Sun Yuchen said.

Sun Yuchen also mentioned that the impact of the FTX incident on the industry is not as severe as the hacking incident of Mt. Gox in 2014. He believes that the industry will quickly recover from this incident, similar to how Bitcoin quickly recovered from the Mt. Gox exchange incident. However, partners with significant transactions with FTX, such as Genesis, may have a challenging time ahead.

Sun Yuchen: SBF Mishandled the FTX Incident

FTX CEO SBF expressed regret on the 17th regarding his bankruptcy decision, stating that if they had not entered bankruptcy proceedings, things would have already recovered to at least over 70%, and withdrawals could have resumed within a month. Sun Yuchen further emphasized at the conference that SBF mishandled the situation by quickly announcing Chapter 11 bankruptcy reorganization.

"We lent Sam more than $13 million as the first payment to build an escape route. I estimate that at that time, the blockchain assets on the platform were worth at least $1-1.5 billion, including several hundred million dollars in cash on the company's account, which could support the platform's operations. However, after announcing the bankruptcy reorganization, the existing management lost control of FTX at that time, and the new lawyers who entered did not understand brand management, which also led to the closure of the escape route," Sun Yuchen said.

Based on the current situation where the platform cannot operate, the app cannot be used, and employees' salaries cannot be paid, Sun Yuchen likened the bankruptcy reorganization to "pulling out the tube," stating that it is challenging to revive once a person dies. He believes that FTX will follow a similar path to Mt. Gox, undergoing a bankruptcy process over several years.

Nota: The escape route refers to the announcement by Sun Yuchen at the time to exchange FTX's internal TRON tokens 1:1 to help FTX users withdraw funds.

Sun Yuchen Optimistic about Hong Kong's Future Development

In late October, Hong Kong issued the "Virtual Asset Policy Declaration." Sun Yuchen is highly optimistic about this, stating that besides being the first stop for international companies entering the Chinese market, Hong Kong has been affected by social events and the pandemic in recent years. The Hong Kong government is eager to revive the economy, thus showing a more open attitude towards digital assets.

Regarding regulatory issues, Sun Yuchen advocates for a multi-national regulatory approach rather than being regulated by the United States alone, as the standards of a single country cannot meet the conditions of all countries worldwide.

"66 Dashun Care Package, Boosting the Industry Together"

The current cryptocurrency industry is facing a temporary downturn. Sun Yuchen, as the global consultant of Huobi and the founder of Tron DAO, is committed to contributing to the industry with the original intention of "community first." The "66 Dashun Care Package" has been launched, aiming to help the industry and users overcome the low tide! During the event from November 18th to December 1st, register with Huobi, click to fill out the activity form, and enjoy exclusive benefits such as 50% off trading fees for Prime3 members, 66 USDT vouchers, and 9% interest on wealth management!

Huobi stands hand in hand with you!

Click to fill out the form: https://forms.gle/mJwhH7eT8EsDiBaF7