Cryptocurrency exchange Binance intends to help industry participants who are experiencing a “slight liquidity shortage” and is in talks with more than 50 companies. The head of the platform, Changpeng Zhao, spoke about this in the Bankless podcast.
According to him, the crisis in the digital asset market is leading to industry consolidation – more successful players are trying to enter the capital or acquire projects that have problems.
On July 1, BlockFi CEO Zach Prince revealed that the US division of the FTX exchange will issue a $400 million revolving loan to the landing platform and will receive an option to buy the company for $240 million.
Zhao noted that Binance could have been the first to take advantage of the acquisition opportunity, but did not.
“Those deals that you see in the news are usually the first to contact us. I am sure that we now have the largest cash reserve, ”he said.
The CEO of the exchange said that the liquidity crisis in the market increased the number of transactions in the US. The US division of FTX is focused on local companies, while Binance has a more global reach, he said.
He stressed that exchanges do not compete in this matter. Zhao also reiterated his thesis that “not all projects are worth saving”.
“We don’t want to bail out companies that are poorly managed. We want to help market participants experiencing a slight liquidity squeeze through this cycle. We are currently negotiating with more than 50 of them,” said the head of Binance.
According to Zhao, his organization feels comfortable in a bear market thanks to large cash reserves and an understanding of the cyclical nature of what is happening. The billionaire expects to use the current situation to expand the staff of specialists.
“By the end of the year, we want to bring the number of employees to 8,000 people,” he said.
In June 2022, Zhao stated that crypto winter is the right time to expand the team and further develop the business through various acquisitions.
Stay in touch! Subscribe to World Stock Market at Telegram.