The CEO of Binance, Changpeng Zhao, popularly known as CZ, has disclosed that he believes in staying clear of the deals that FTX is getting involved in, at the moment.
FTX’s CEO, Sam Bankman-Fried has actively been involved in trying to save and create strategies for struggling crypto organizations.
With the bear market and the Terra debacle, several crypto companies are facing financial issues such as BlockFi and Voyager Digital. In a bid to save them, Bankman-Fried and FTX have spent billions of dollars in an attempt to rejuvenate the ailing companies.
In a podcast interview with Decrypt, CZ disclosed that he does not believe in the deals that Bankman-Fried was getting into, hence, he preferred to stay away from them.
Bankman-Fried, through one of his companies, Alameda has offered a $500 million line of credit to Voyager Digital, a financially struggling crypto broker. Recently, Voyager Digital filed for Chapter 11 bankruptcy to protect its assets.
When CZ was asked about the actions of Alameda in trying to save Voyager Digital, he disclosed,
“It was surprising even to me, to be honest. I try not to comment on our competitors or our industry peers. But I would never do this kind of transaction. I would never say, ‘I’m going to invest in your business and then you lend me money.’ I just wouldn’t invest in that business, I’d keep my money.”
Binance’s CEO was not forthcoming on the idea of discussing his competitors, but he noted,
“Personally, for me, and to a large extent for Binance, we like very simple offers. We like offers like ‘What’s your turnover?’ We don’t like deals where, “Hey, I owe you this money, you pay me back that much money, you invest in me, I give you more money in loans, and then you bail me out.” not just giving all the money back and going back to zero and talking about net, who owes money to whom?”
In the course of the podcast, CZ stated that he doesn’t believe that bad companies should be saved.
“Do not perpetuate bad enterprises. Let them fail. Let other better projects take their place, and they will.
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