‘Bad’ crypto projects should not be bailed out says Binance founder CZ

Binance founder and CEO Changpang CZ Zhao argues that crypto bad projects should not be abandoned and that crypto companies with healthy savings should not receive insurance.

June 23 Blog Post CZs that release products that are doing well, poorly managed or poorly designed should not receive a warranty – and should be allowed to dismantle instead.

“In short, they are ‘bad’ projects. These should not be saved. Unfortunately, some of these ‘bad’ projects have a lot of users, often with exaggerated incentives, ‘creative marketing or net ponzi schemes.

“Also, in any industry, there are always more unsuccessful projects than the successful ones. Hopefully, the failures are small, and the successes are great. But you get the idea. Saving here does not make sense.”

The comments come as crypto billionaire Sam Bankman Fried and Alameda Research recently launched a $ 350 million USDC and 15,250 BTC revolving loan to save liquidity companies and projects such as Voyager Digital. At the time of writing, $ 464.48 million.

Sized went on to say that Binance could help support some financial services companies or “help those who have problems but can be corrected” or “those who have survived but have great potential.”

“Many projects have come to us to participate and to talk. Again, in real life, these categories are not obvious. All projects consider themselves as the third category, and we need to look at each project in detail to determine. There is a certain amount of obedience to him. ”

As a result of the current bear market, many companies are in liquidity, while others are at risk of bankruptcy and projects such as Three Arrows Capital and Celsius.

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Binance CEO comments echo similar comments from US Sec.

In an interview with Forbes on June 21, the crypto-suite commissioner, known as “Crypto Mother”, argued that “it is better to let these things play out than to create a more sustainable industry.”

“When things get a little tricky in the marketplace, you know who’s really building something that will last a long time and what’s going to happen,” she says.

Centralized Binance

In an interview with Bloomberg Business Week June 23 CZ, the company’s mission is to support blockchain-based projects that can operate outside of a central authority or leader, as opposed to the traditional centralized model.

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

However, the publication may not be decentralized as requested, citing comments from unnamed former Binance employees, stating that CZ has sole authority over the decisions of the company and its business.

“At the end of the day, it is a company,” said a former employee.

The angle of Bloomberg article may require a pinch of salt, which Cesed never said clearly, but said Binance was a decentralized company, although it advocated the concept. Although Binance Smart Chain is a decentralized ecosystem, it has made accurate criticisms of the lack of such in the past.

Although CZ targeted low-performing companies this week, Binance’s management structure is also in question.