How CZ Declined $40 Million Investment Offer from SBF

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According to Michael Lewis’ book “Going Infinite,” Binance CEO Changpeng “CZ” Zhao turned down an offer in March 2019 from former FTX CEO Sam Bankman-Fried to invest $40 million in creating a cryptocurrency futures exchange.

In 2018, he launched CryptonBTC, a bitcoin exchange, without a clear strategy for promotion or customer acquisition. He and his team proposed developing a futures platform for existing crypto exchanges. In this model, Alameda would provide the technology while the existing exchanges would bring in customers.about this proposed design, as a single unfavorable trade could lead to a complete loss of collateral, leaving the exchange responsible for the losses.

Bankman-Fried then introduced the FTX token to secure funding for the project. The digital asset offered holders a share of FTX’s annual revenues through a buyback and burn mechanism, which Binance had previously employed successfully.350 million FTT tokens aimed at international investors. Some were offered to FTX employees at five cents and to key figures in the crypto industry, including Changpeng “CZ” Zhao, at ten cents. Most FTX employees and Zhao declined this offer, except for Salame.

Shortly before the listing, Bankman-Fried coincidentally met Zhao at a crypto conference in Taipei, where they exchanged warm greetings. SBF noted that it was the first time CZ seemed more interested in him than he was in him. Three weeks later, Zhao contacted Bankman-Fried andThe Future of EOS: The World’s Largest ICO With ENF CEO Yves La Rose

 

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