Binance vs. FTX: CZ calls out ‘bad players’ for crypto exchange jitters
The CEO of crypto exchange Binance, Changpeng ‘CZ’ Zhao, raised concern for traders after learning about the infamous phenomenon of trade jitters on other crypto exchanges.
Jitters in crypto trading relate to a trade event wherein an investor’s buy or sell order gets stuck and moves down in the list, allowing newer trade orders to go through.
Just learned a new word, jitters. On 1 particular exchange, sometimes your orders will be stuck for a bit, and a few other orders will get in front of you. Apparently, this happens often enough on this exchange that the traders coined a term for it, jitters. (Front running)
While CZ’s concerns against jitters did not explicitly target any particular exchange, the crypto community on Twitter assumed it was a dig at FTX, a crypto exchange led by Sam Bankman-Fried. Responding to the community’s reaction that suggested ‘jitters’ as a well-known and accepted situation, CZ added:
CZ further reached out to the VIP traders on Binance, who allegedly confirmed knowing about the illicit trade activities. The indirect allegation against FTX perfectly coincides with the timeline when the Federal Deposit Insurance Corporation (FDIC) issued cease and desist order to the exchange and four other crypto companies.
According to the FDIC, FTX US, SmartAssets, FDICCrypto, Cryptonews and Cryptosec allegedly misled investors by claiming their products were insured by the FDIC. Reacting to the order, FTX US president Brett Harrison deleted a tweet making the claims opposed by the FDIC. However, Crypto Twitter was quick to point out numerous other instances when Harrison falsely claimed FDIC insurance.
pic.twitter.com/6u06tJjS6E
In an attempt to cushion the freefall, SBF revealed his intent to work with the
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