CZ stated that Binance will help the “players” in the industry during difficult times. But only to some

  • Changpe Zhao told which projects Binance will help to withstand the crisis
  • He divided them into three categories: “bad”, “problematic” and “persistent”
  • And it is precisely on the third that the exchange is oriented
  • CZ does not consider the current market a disaster, and he is confident that cryptocurrencies have already demonstrated their resilience

Today, June 23rd, Binance CEO Changpeng “CZ” Zhao published a note on reflections on the topic of leverage and support for crypto projects. According to him, the exchange will help “players”, but only those who really deserve to be saved.

“Binance is one of the biggest players in the industry with a large cash reserve. As such, we have an obligation to protect users. We are also responsible for other counterparties and must help them survive in the current environment. However, the word “help” can be interpreted in different ways. And just like in the real world, this situation is not black and white.” CZ said.

Someone is not worth saving

The CEO of the exchange brought a number of projects into the “bad” category. In his opinion, saving them is simply pointless. They are characterized by weak organization, ill-conceived management and do not bring anything new to the industry.

He also noted that such projects often have a huge audience. Users are attracted through aggressive marketing or inflated bids. Sometimes it’s just another “pyramids” on “Ponzi scheme“.

CZ believes that training is the best protection for affected participants in such projects. The CEO of Binance invites them to continue to pay more attention to the analysis of risk factors and building an investment strategy.

Problematic but interesting projects

In the second category, Zhao put those enterprises that are not without flaws, but still deserve “salvation“. They found themselves in a crisis situation due to mismanagement of expenses, weak reserves, or other minor problems. With appropriate support, these complexities can be powerfully addressed.

Those who survive but with difficulty

In the third category are companies that are simply unlucky. They could go for a merger, take out a line of credit, or cut spending to “keep afloat.” Often they offer a high-quality, and sometimes unique product that fully meets the requirements of the market. It is on such projects that the exchange is focused.

According to CZ, Binance received a lot of applications from teams with interesting ideas, but weak “financial foundation”. And they all belong to the third category. The task of the exchange experts is to fairly evaluate the project, as well as the positive effect for Binance from participating in its support.

At the end, Zhao touched on the topic of different types of leverage, and also shared his opinion on the bear market this year. He believes that the field of cryptocurrencies has already demonstrated its resilience and there is no need to focus on the short term.

In recent weeks, several large projects have been on the verge of liquidation at once. Among them are venture fund Three Arrows Capital, as well as landing platforms Celsius and Babel Finance.

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Author of articles on trading and investments, which I have been doing for more than 8 years. Even from your phone, you can open a deal, buy shares, build up capital in assets that will bring dividends even when you stop working. You can't just not think about it.

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