Rumors circulate that Binance could announce a bailout given its healthy cash reserves. Nevertheless, Binance Finally, he pointed out that there are bad projects and they should not be rescued. Ad comes later FTX contacted lenders crypto in difficulty BlockFi and travel.
Binance will not support “bad” and failed projects.
changpeng ZhaoDirector of Binance and one of the industry’s leading crypto advocates, has shared his thoughts on project bailouts and supporting the digital asset ecosystem during a severe crypto downturn.
My views on bailout and leverage, as in the current market. https://t.co/EC8WULUaOO
— CZ 🔶 Binance (@cz_binance) June 23, 2022
The world’s largest cryptocurrency exchange has a role to play, it says CZ. This citing its aggressive cash reserves and its status as an industry player. Zhao pointed out that this obligation exists regardless of the possible profits or losses of Binance. the leader of Binance He further added that the rescue plan is not binary and the support plan during this period should be based on several factors. “The rescue here is pointless”has declared Zhao.
On the other hand, some projects make mistakes along the way, but still make up for them. According to Zhaothese projects have built better products that deserve a ransom
“Either they are too aggressive in spending, they have insufficient reserves, or they have other minor problems that can be fixed. These projects generally have good qualities: product fit to market, revenue generation under normal market conditions, strong business models, decent teams, etc. »
Bonus: VanEck and Investo are launching a crypto ETF in Brazil that allows instant and permissionless transfers.
The SEC commissioner opposes the bailout.
The SEC Commissioner, Hester Piercecrypto-friendly, dissented soon after FTX announced a $250 million bailout of BlockFi. The recent stock market crash, he said, was a natural process of separating the strong from the weak. Let things unfold naturally.
She said: “Crypto no rescue mechanism […] me I don’t want to come in and say we’re going to try to find a way to bail you out if we don’t have the power to do so. But even if we did, I wouldn’t want to use that authority, we really have to let these things play out.
Also, crosshe also said that the slowdown could be a valuable learning opportunity for market participants and regulators.
To go further: Ontario regulator OSC is cracking down on Bybit and KuCoin exchanges.