Binance CEO Changpeng “CZ” Zhao said bad projects should be allowed to fail, and Binance is not going to offer “aid” to such projects.
in Blog Post Titled “Note on Rescue and Crypto Leverage,” CZ said that Binance should help “industry players survive and hopefully thrive,” even if the company stands to gain nothing from such assistance.
CZ class rescue
He went on to say that there are different types of ejection. He believes that some projects or companies are bad, as shown by their poor design, management and operation.
Such projects do not deserve to be preserved, no matter how many users they may have. By CHZ:
Salvation doesn’t make sense here. Don’t perpetuate bad companies. Let them fail. Let other better projects take their place.
The second category includes projects with fixable problems. These projects made mistakes, such as spending too much or saving too little.
CZ said that companies with these good qualities and fixable problems should be rescued and “forced to fix the problems that got them into this situation in the first place.”
In the third category, projects with great potential but struggling to survive due to limited budgets should be classified as large investment assets. CZ added that the Binance deals team has been in talks with similar projects lately.
Salvation talk is on the rise
CZ shared her opinion just a few days after SEC Commissioner Hester Pierce said she did not support bailing out crypto companies. According to Pierce, a market crash is a chance for bad projects to fail.
Meanwhile, FTX and Alameda Research CEO Sam Bankman-Fried recently said his companies could intervene to prevent the industry from becoming contagious.
Alameda Research has provided a $200 million loan and a 15,000 BTC revolving line of credit to brokerage firm Voyager Digital.
In addition, FTX also offered a $250 million loan to BlockFi.
Credit : cryptoslate.com