He has shared his concerns about the confusion and nervousness that have been caused by other cryptocurrency exchanges.
It happened recently when Changpeng learned about the infamous phenomenon that has been taking place within the crypto-verse. The phenomenon resulting in great confusion and nervousness is due to the cryptocurrency exchanges spreading false and misleading information.
The Jitter Phenomenon
CZ talked about the phenomenon he learned about other cryptocurrency exchanges where a trader’s order does not go through while newer traders are able to do it.
The phenomenon occurs when an investor places an order for buying and selling. Right after the command is given, the order gets stuck and ends up moving down the list of orders.
While this happens, the orders placed by newer traders go through fine but the impacted trader is unable to place the order when he/she wants.
The Cryptocurrency Community Thought CZ was Targeting FTX
While CZ shared his concerns about the jitters in general, many of his followers and other cryptocurrency community members thought he was having a go at the FTX exchange.
FTX is also a cryptocurrency exchange with worldwide popularity. The cryptocurrency exchange is run by Sam Bankman-Fried.
CZ even spoke to the entire community about their silence on the jitter. He stated that many of his followers and others within the crypto-verse knew about the jitters but they said nothing about it.
If they had, the matter could have been addressed and dealt with swiftly. CZ stated that everyone within the cryptocurrency community needs to speak up against such practices of other cryptocurrency exchanges.
The bad actors must be identified and brought to justice so a lesson can be learned from them.
CZ Reached out to Binance’s VIP Traders as well
CZ reportedly spoke with the entire traders’ community in Binance and, the VIP traders in particular. Even the VIP traders confirmed that they were aware of the jitters used by other cryptocurrency exchanges.
It is quite surprising that CZ has shared his concerns about the jitters because his comments have coincided with the recent ordering by the FDIC.
The Federal Deposit Corporation (FDIC) recently issued an order to the exchanges to cease and desist. The order has been issued to FTX as well as four other cryptocurrency exchanges.
The Order by the FDIC
The order issued by the FDIC states that multiple cryptocurrency firms have sold their products to the locals claiming they were FDIC insured.
By making such a claim, these platforms misled the investors and breached the regulatory protocols. The platforms issued with the cease and desist order include Cryptosec, Cryptonews, FDICCrypto, SmartAssets, and FTX US.