- Binance is searching for strategies to assist distressed crypto firms, such as loans, minority investments, or majority purchases.
- Only large firms will be recognized because small businesses’ privacy must be respected, according to the company.
- During the recent market turmoil, Changpeng Zhao announced that Binance is reviewing around 50 to 100 crypto business proposals.
Binance CEO Changpeng Zhao, in a Friday interview with Yahoo Finance, said that the company is reviewing 50 to 100 proposals from cryptocurrency businesses in light of recent market turmoil. The CEO also stated that the exchange was working on several methods to assist struggling cryptocurrencies, including loans, minority investments, and majority purchases.
We definitely look at all of that. We’re looking at [five to one hundred] deals,” Zhao said. “Everyone knows we have the largest cash reserve in the industry. Everyone’s talking to us.
Zhao said that the company has already agreed on some deals with large companies, while adding that Binance would only announce agreements with large companies, citing the privacy of smaller firms.
Many crypto firms are under pressure as a result of the market downturn. Celsius Network, a popular crypto lending platform, was announced to be liquidated by BitMEX.The crypto hedge fund is struggling as a result of Terra’s downfall and the accompanying crypto market turmoil.
In addition, 3AC has failed to satisfy margin calls. The news about the liquidation was disclosed by a Bitmex spokesperson, who confirmed it to the news outlet The Block. The spokesperson confirmed that the fund was not client funds and was collateralized debt. The Binance CEO’s comments come as the cryptocurrency market is amid a major sell-off. In his speech, Zhao stressed the need for clear regulatory rules for crypto firms of various sorts. He stated the criteria should state, for example, “the amount of required transparency in disclosure,” because some firms stopped communicating with investors after their businesses deteriorated.