Binance founder and CEO Changpeng “CZ” Zhao argues that “bad” crypto projects should be left to fend for themselves and not get help from crypto firms with significant cash reserves.

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In a June 23 blog post, CZ stated that firms that performed poorly, were poorly managed, or released poorly designed products should not receive bailouts—instead, they should be left to crumble:

“In short, these are just ‘bad’ projects. They should not be saved. Unfortunately, some of these “bad” projects have large numbers of users, often acquired through inflated incentives, “creative marketing, or pure Ponzi schemes.”

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“Besides, in any industry there are always more unsuccessful projects than successful ones. Let’s hope the failures are small and the successes are big. But you got the idea. Help here does not make sense,” he added.

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The comments come amid recent moves by crypto billionaire Sam Bankman Freed and his firm Alameda Research to bail out companies and projects that have weathered recent liquidity problems, such as Voyager Digital, with a $350 million revolving loan in coins (USDC) and 15 250 BTC, which is worth $464.48 million at the time of writing.

However, CZ noted that Binance can count on the support of some easy-money companies that either have “problems but are fixable” or are “barely surviving but have great potential.”

“We have received many projects with which we would like to communicate and talk. Again, in real life, these categories are not clear labels. All projects fall into the third category, and we need to study each project in detail in order to make a decision. There is some subjectivity in this,” he said.

A number of firms are experiencing liquidity problems as a result of the current bear market, while others are reeling from exposure to potentially insolvent firms and projects such as Three Arrows Capital and Celsius.

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The Binance CEO’s comments echo those of U.S. Securities and Exchange Commission (SEC) Commissioner Hester Pierce on Tuesday, who opposed the cryptocurrency bailout altogether.

In an interview with Forbes on June 21, a cryptocurrency advocacy officer known as “Cryptom Mom” argued that instead of bailing out struggling firms, it’s better to “let these things take off” in order to create a more resilient industry.

“When things get a little more complicated in the market, you find out who is actually building something that can last a very long time and that will soon disappear,” she said.

Centralized Binance

June 23 CZ stated during Bloomberg Business week interview His company’s mission is to support autonomous blockchain-based projects that can operate without a central authority or leader, as opposed to the traditional centralized model.

The CEO also referred to his company as an “organization” and his employees as “team members” as part of this decentralization mission.

However, the publication cited comments from alleged anonymous former Binance employees saying that the company may not be as decentralized as claimed and stating that CZ has exclusive power over the company and its business decisions.

“After all, he is a holding company,” a former employee told the publication.

The angle of the Bloomberg article may require a pinch of salt, given that CZ has never explicitly stated that Binance is a decentralized company, despite his advocacy of the concept. While Binance Smart Chain does claim to be a decentralized ecosystem, it has been justifiably criticized in the past for not having one.

While CZ has targeted poorly managed companies this week, Binance’s governance structure has also been called into question.