Although he is currently a big investor in cryptocurrencies, including bitcoin (BTC), Changpeng Zhao strongly recommends his followers to diversify their sources of investments in order to avoid unpleasant surprises. He also provided details on the future relationship between Binance and Terra.
In place since 2017
On Reddit, Binance CEO Changpeng Zhao was recently asked to comment on several topics, including the thorny issue of investment. “When it comes to investing, I’m not a good example. I don’t diversify enoughZhao said. “I recommend to most people opt for diversification. But for me, I am all in Binance”. He also added: “All in crypto, BNB and BTC. I use my Binance Card everywhere I go”.
CZ is CEO of Binance and has been in the role for many years, since 2017 to be precise. According to Forbes, he has a total 30% stake in the company and is currently the 19th richest person in the worldwith a net worth of $17.4 billion.
While many players in the cryptocurrency market and companies specializing in the field have decided to break the current with Terra (LUNA) because of the collapse of its system, Binance, it, will continue to collaborate with society. So said its CEO.
“We briefly suspended the trading when validators paused the blockchain, even that caused a lot of complaints,” he wrote. “But I believe our action forced the validators to take over the network within hours.”
The reasons for collaborating with Terra
The CEO quickly addressed a question about why he wants to continue collaborating with Terra. He replied that his low number of validators helps to perform faster transactions. That said, he has indicated that he is not really involved in such decisions. Instead, it leaves it up to the core developers of the blockchain.
“My limited understanding of the technology is that there is a trade-off between node count and performance at this stage in the evolution of our blockchain,” Zhao said.
Regarding user funds on the world’s largest cryptocurrency exchange by volume, Zhao clarified that they are only never mixed with company operational funds. In the event of bankruptcy or similar event, he promised that “the funds would be reimbursed to the users first, before any shareholder”.
Binance is not going to sever business with Terra. On the contrary, she is determined to continue her relationship with the company and its blockchain. On the other hand, CZ claimed that even if Binance ever went bankrupt, investors’ funds would be completely safe.
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Behind the generic signature “Redaction CT” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.