Over the past month, many companies in the cryptocurrency industry have been in financial trouble. Some companies deserved a bailout, and the US exchange FTX caught it early. It already gave BlockFi a bailout, and Bitcoin miners are likely to be added soon. But Binance CEO Changpeng Zhao states that Binance actually predates FTX.
Bailouts not worth it
In a interview with Bankless declares the CEO, who is also known simply as ‘CZ’, that it was at the very front of the line when it came to crypto bailouts. “All opportunities come to all of us,” he said, referring to “us” as the strong crypto firms with enough capital for bailouts.
†We could probably pick first. Of all the deals you’ve heard in the news, they’re the first to come to us.’ He stressed that he wants to respect the secrecy obligations that many of these deals entail, so he cannot provide further details.
Lots of cash during bull market
He also mentioned that Binance coped well with the crash. The company owes no one to anyone and even now it is profitable. Even in bull markets, the company keeps in mind that Bitcoin (BTC) can fall 80%.
CZ thinks many crypto companies thought the bull market would go on for a long time. Binance kept in mind that the market can go up and down fast, which is why it held quite a lot of cash even during the bull market. Also, Binance’s revenue comes in various cryptocurrencies. 25% to 30% of that comes from stablecoins. The CEO says the company is now heavily dependent on it.
Furthermore, CZ says that bear markets offer a good opportunity to continue investing. For example, Binance continues to hire people, while most exchanges are firing people. Well it is important to stay rational and watch your money carefully.