CZ Urges Crypto Buyers to Hold Amid Extreme Volatility
Changpeng “CZ” Zhao, Binance CEO, has strongly advised tapped-out and new investors against trading crypto in extreme market conditions with wild volatility and unpredictability.
Do not invest in crypto with the money you need in the near future; only use discretionary cash that you won’t need for a long time. The market will turn highly volatile and unpredictable so try to avoid trading for the time being unless you are experienced and very confident that you can handle the risk.
The FTX crisis hit the market quite negatively, shaking the whole industry, especially exchanges that had to halt operations temporarily, triggering market volatility. Zhao assured that Binance has no issues and said the exchange could be trusted. He pointed to the balance sheet of Binance, saying that Binance does not have loans or debt, nor does it owe anybody money. He further added that Binance never gives user assets to a third party to manage and make yields.
The Binance CEO confirmed that the exchange underwent withdrawals followed by the FTX crash and several other events that negatively impacted community trust for centralized exchanges.
He also said that even if Binance crashed, the platform wouldn’t block withdrawals for its users. If everyone chooses to withdraw funds from the centralized exchange, they will just shut down the exchange, “we have many other profitable businesses,” he said.
CZ did not cancel out the complete possibility of such a thing happening, adding that once decentralized finance (DeFi) apps go mainstream, there will be no need for centralized exchanges.
He said that if we find a way to allow people to hold their assets in their own custody securely and with ease, centralized exchanges will not and do not need to exist.