CEO Changpeng Zhao (CZ) commented on Binance’s risk after several major crypto lenders collapsed.
In a recent interview with CNBC’s TechCheck, CZ explained that Binance’s finances were unaffected by the recent collapse of several major companies without specifying any names but implying Celsius Network (CEL) or Three Arrows Capital (3AC).
“We are not involved in any of the names that are publicly known. I won’t name them, but we don’t have any loans to them, we don’t owe them any money, so we weren’t involved.
Our name never came up in any of those situations.”
Despite the recent barrage of negative news, CZ commented that the crypto space is rarely painted in a positive light but continues to evolve due to its strong fundamentals.
CZ concluded by highlighting Binance’s previous experience weathering the bear market and why the company is not only alive but poised to expand in the coming months.
“I think a lot of players didn’t manage their cash reserves well. For many of the players, this could be the first bear market.
We’ve been through quite a few of these before, so we’ve managed our money well. Now we have cash reserves that allow us to hire more, make more investments in strong companies and too [help] some of the cash-strapped companies when they are good companies.
We can lower fees. We are able to start affiliate referral programs. We actually see a lot more opportunities today than we did a year ago.”
In contrast, to reassure customers, Celsius plans to offer customers the choice of recovering “cash but at a discount” or “remaining crypto ‘long’ as part of the bankruptcy process.”
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