Binance CEO CZ Rejects $40 Million Offer from FTX’s Sam Bankman-Fried
In March 2019, Binance CEO Changpeng “CZ” Zhao declined a $40 million offer from former FTX CEO Sam Bankman-Fried to create a cryptocurrency futures exchange. At the time, Binance was primarily a spot crypto exchange and the idea of a futures-only platform was a deviation from its existing model. Instead of accepting the offer, Zhao chose to develop a futures exchange in-house.
Bankman-Fried went on to establish FTX in May 2019 despite the rejection. According to Michael Lewis’ book “Going Infinite,” Bankman-Fried saw Zhao’s decision as disappointing but ordinary. He described Zhao as having the potential to be intriguing but falling short of expectations.
Bankman-Fried Faces Challenges in Starting FTX
Prior to creating FTX, Bankman-Fried faced difficulties in getting started and attracting customers due to being relatively unknown in the crypto space. In 2018, he collaborated with Gary Wang to launch a Bitcoin exchange called CryptonBTC, which failed to gain traction. Bankman-Fried then pitched existing exchanges with the concept of a futures platform, hoping that Zhao would be interested.
Zhao had concerns about potential losses resulting from futures trades gone wrong. Despite this rejection, Bankman-Fried remained determined and introduced the FTX token (FTT) to secure funding for his vision. FTT garnered interest and eventually listed on FTX.
Hot Take: The Rejection That Led to FTX’s Creation
The rejection of Sam Bankman-Fried’s offer by CZ may have been disappointing for Bankman-Fried at the time, but it ultimately led him to create FTX, which has become a notorious exchange in the crypto space. Bankman-Fried’s determination and introduction of the FTX token allowed him to secure funding and bring his vision of a user-friendly crypto futures exchange to life. Despite initial challenges, FTX has gained traction and established itself as a prominent player in the industry.
By
By
By
By
By