Binance CEO urges crypto buyers to 'hold' amid 'unpredictableness'
Binance CEO Changpeng “CZ” Zhao has strongly advised cash-strapped and inexperienced investors to stay away from trading cryptocurrencies amid extreme market volatility and unpredictability.
On a Nov. 14 Zhao-led “Ask Me Anything” Twitter space hosted by Binance the CEO suggested that unsophisticated investors wait out the turbulent period instead of risking money needed for living expenses:
For those who do have that spare cash, Zhao advised inexperienced investors and traders to think twice before deploying capital into the market in the near future:
“So unless you're very experienced, very mature, very confident, and can handle the risk, I would recommend most people just hold for this period of time,” he added.
The spike in market volatility comes as the FTX crisis has had a negative effect on the whole industry — particularly a number of centralized exchanges that have had to temporarily halt withdrawals.
But Zhao confirmed that no such issues exist at Binance. When asked why users should maintain trust in the exchange, he pointed to the company’s balance sheet:
Zhao confirmed Binance experienced withdrawals following the FTX collapse and several other events that led to a fall in community trust for centralized exchanges.
He iterated that even in the event that Binance collapsed the platform still wouldn’t block its users from withdrawing their funds.
“If everybody withdraws their funds from the centralized exchange, we'll just shut down the centralized exchange. We have many other profitable businesses that we have,” he said.
Related: Exchange outflows hit historic highs as Bitcoin investors self-custody
Zhao thinks such an event is entirely possible too, stating that once decentralized finance (DeFi) applications
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