Binance Founder Called “a Douche” for Rejecting Investment
In a book by Michael Lewis, Sam Bankman-Fried criticized Binance founder Changpeng Zhao (CZ) for refusing to invest $40 million in his plan for a crypto futures exchange. Bankman-Fried described Zhao as “kind of a douche but not worse than a douche,” expressing disappointment with his decision. Instead, Zhao decided to start his own futures exchange under Binance, which primarily focused on spot crypto trading at the time.
Bankman-Fried Founded FTX Instead
Following the rejection, Bankman-Fried went on to establish FTX, a well-known crypto exchange that collapsed in November 2021. He is currently facing trial for fraud and conspiracy related to the collapse. The book also mentions other encounters between Bankman-Fried and Zhao. When FTX offered discounted tokens to important figures like Zhao, he declined the offer. However, later on, Zhao expressed interest in buying a 20% stake in FTX for $80 million.
Hot Take: Clash of Crypto Titans
The clash between Sam Bankman-Fried and Changpeng Zhao highlights the competitive nature of the crypto industry. While Bankman-Fried may have felt disappointed by Zhao’s rejection, it ultimately led him to create his own successful exchange. This encounter demonstrates that even within the crypto world, personalities and rivalries can shape the direction of the industry. It serves as a reminder that behind the scenes of innovative technologies and financial systems, there are individuals with their own ambitions and agendas.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.