According to Mr. Zhao Changpeng, the founder and CEO of Binance, individuals should diversify their assets. However, he noted that he does not always follow his own advice.
In the wake of the recent hackers’ attacks, Binance CEO Zhao Changpeng asserted that users’ funds were “SAFE,” assuring them that they would not be affected.
In response to user queries, the 44-year-old billionaire briefly addressed a range of issues in a Reddit AMA – which means Ask Me Anything.
In a single response, CZ made it clear that he was not a role model investor. CZ said that he had no spread investments. His current assets include Binance and other cryptocurrency-related operations like BNB and BTC.
Diversification of investments may be critical in lowering risk and, ultimately, increasing returns, yet the CEO appears to have no problem concentrating his wealth. According to reports, he controls about 30% of Binance and is the nineteenth richest person on earth.
The strange move by Binance to continue trading LUNA, despite the fact that it had been banned by its validators, was also discussed during the AMA. On May 8, the value of Terraform Labs’ LUNA token plummeted from about $116 to less than a penny, making it the steepest ever.
In reaction to the loss of over 99% of the value of LUNA, the blockchain’s validators shut it down. The development resulted in all LUNA transactions being disabled on all platforms, forcing several exchanges to delist the currency.
However, the token remained on Binance for a lengthy period of time and was subsequently delisted by the exchange to protect its users’ financial security. The advisory, on the other hand, urged traders to exercise extreme caution.
According to Zhao, Binance’s decision to resume trade of the cryptocurrency was the reason why its validators decided to relaunch the network.
Safety and Decentralization for User Funds
In response to another inquiry about user funds’ security, Zhao stated that the company does not utilize user cash in its operations. The CEO acknowledged the distinct separation between the two resources.
He continued that the firm placed a high value on user money. In the case of bankruptcy or any other scenario that put Binance’s financial stability at risk, customers would be reimbursed before investors or shareholders, according to Changpeng.
When asked whether Binance ever used customer funds in its operations, Zhao assured the audience that no user money is utilized. The CEO acknowledged the clear distinction between the two resources. The company, according to him, placed a high value on user funds.
The company would reimburse users before investors or shareholders in the case of bankruptcy or any other situation that threatened Binance’s financial stability, according to Changpeng.
In a Reddit AMA, Bitcoin billionaire Erik Finman addressed a variety of queries. However, the thread was deleted shortly after the session ended, before it was restored.