- The leading exchange acknowledged its role in helping industry players survive market conditions.
- CZ noted that there are some bad projects and they shouldn’t receive bailouts.
- Zhao also stressed that there are projects with fixable problems and great potential that should receive the support they need.
Changpeng Zhao, CEO of Binance and a major crypto proponent in the industry shared his thoughts regarding project bailouts and supporting the digital asset ecosystem amid a significant downturn in crypto.
CZ said that the world’s largest crypto exchange has a role to play, citing its positive cash reserves and its status as an industry stakeholder. Zhao noted that this duty exists regardless of the benefits or potential losses to Binance.
As you all know, current market conditions are tough. With our position as one of the largest industry players with healthy cash reserves, we have a duty to protect users. We also have a responsibility to help industry players survive and hopefully thrive. This is the case even if there are no direct benefits to us or we experience negative ROIs.
Notably, FTX CEO Sam Bankman-Fried shared similar remarks as EthereumWorldNews reported.
The Binance chief further added that bailouts are not binary and supporting projects through this period should be based on several factors. CZ expanded on this by highlighting that some projects are poorly, designed, poorly managed, and operated. “Bailouts here don’t make sense,” said Zhao.
In contrast, there are some projects that have made mistakes along the way but remain redeemable. According to Zhao, these projects built better products and can be bailed out.
Binance Ready To Build Through Bear Market
CZ’s company reportedly has a war chest to ensure that operations continue growing despite a slump in the crypto market. Zhao previously said that the firm has 2000 open positions and plans to expand its business.
Other exchanges like Coinbase and Gemini have dialed back on hiring and announced workforce cutbacks due to marker conditions.