THE BIGGEST EXCHANGE PLATFORM - THE BRAVEST?
Binance is not scared of Crypto Winter, while more exchanges fall down
Coo! It’s Crypto Owl, miss me? Let’s start a new week together with some fresh crypto news!
On Today’s Menu:
🕛 Estimated reading time: 3 minutes & 12 seconds
🍱 SUSHI: Binance is not scared of a bear market
🍤 SOME SHRIMP ON THE SIDE: More news from crypto exchanges' horizon
BINANCE IS NOT SCARED OF A BEAR MARKET
You know Binance - the biggest crypto exchange platform in the world. Yes, that one! The company’s founder and CEO Changpeng Zhao (who likes to be called “CZ”), recently talked in a podcast about Binance and what’s new happening with the company during these challenging times.
The good news is that you don’t have to watch or listen to the whole podcast, because I did it for you. So, save your time, because these are the main CZ insights from the recent podcast:
Binance has no debts, so the company is doing just “fine”. Also, they are always mentally prepared for Bitcoin going another 80% down;
Mindset is essential if you want to get through this bear market. (and I guess CZ has a really strong mindset if he’s not scared of losing almost everything);
Binance relies heavily on stablecoin (CZ hasn’t mentioned which stablecoin) during this bear market (stablecoins make around 25-30% income), because, well, it’s … stable. Duh;
CZ says that not all projects are worth saving (putting money into bad and mismanaged projects is not a good idea); but, Binance is ready to save companies that have minor problems with liquidity;
CZ believes that if you sustain yourself throughout the bear market, you come out stronger; it’s not CZ’s first ride with the bears, so the guy definitely knows what he’s talking about;
Right now it’s the best time to hire talents. And to buy cheap crypto at an under-average cost, because it helps to create more holdings in the future. (But as CZ said himself, he doesn’t want to recommend specific strategies, especially in a bear market like this one.);
As an investor, you need to focus on a small number of projects that you actually know well. And if you can tolerate the risk and you genuinely believe in those projects, that is all that should matter. Even if the market goes down tomorrow, from a long-term perspective the industry is not going anywhere;
Historically, bear markets tend to last about two/two and a half years. But this bear market is different due to war in Europe, the highest inflation levels in 40 years, and so on. So CZ is unsure about this bear market. I mean, no one is, right?
It’s the best time to hire new employees. Binance currently has 6000 employees, but the goal is to hire 2000 more by the end of the year. Binance is hiring “across the entire spectrum of every position” they have; Good time to apply if you are interested!
Binance is not aiming to become an institution like a bank, or company like Facebook, or something like it. Even though right now they keep people’s money, they want to become a fully decentralized exchange in 5-10 years;
Many people focus on the U.S. market. But Binance also focuses on less-developed regions like Africa, Latin America, and so on, because in such areas you can help billions of people by providing financial tools so people could become more financially free. Binance aims to provide its services globally to “everybody on Earth”;
Funny, but CZ is not sure about BNB Chain and where is it going. It’s a bit weird since he’s the CEO, but as CZ says, it’s a developers thing. The most important thing is that BNB Chain should be community-driven;
Centralization-decentralization is not black and white, it’s a full spectrum. Gradient scale. Bitcoin is not fully decentralized due to miners and their 51% rule. BNB Chain is less centralized than Bitcoin. And Binance wants to give freedom to people. And not to become overly centralized;
CZ is in crypto because he wants people to be financially free. And he believes that crypto can do this.
Owl’s takeaway: this podcast was pretty nice to listen to, however, CZ hasn't told anything super-specific about Binance or BNB Chain. And, I’ve noticed that CZ kinda avoided answering directly the questions about Binance being more centralized than decentralized. So that’s weird, is there something that CZ is hiding from society, or should we be reading between the lines?
MORE NEWS FROM CRYPTO EXCHANGES’ HORIZONS
There were rumors spreading around about KuCoin - one of the well-known crypto exchanges. It was about KuCoins' plans to stop the withdrawal function. The community was suspicious that KuCoin maybe had something in common with Luna, 3AC, and so on... to the fallen ones, you know.
In May 2022, KuCoin was evaluated at $10 billion and is hiring new staff for multiple positions. Does it look like a bad sign? Not for me.
KuCoin CEO Johnny Lyu denied all those rumors very quickly.
On the other hand, Voyager Digital - another exchange that I’ve already mentioned in previous newsletters, actually freezes trading, deposits, withdrawals, and rewards. Temporarily.
Guess who got to be blamed? 3AC. Surprise? Nope.
Apparently, 3AC failed to repay around 15,250 Bitcoin and 350 million USDC loan. Ouch.
Now it is unclear when the platform will restore trading, deposit, withdrawal, and reward services. Definitely not the best news for Voyager users.
DID YOU KNOW?
Ethereum gas prices finally dropped and dropped well. Now it’s on the lowest level since 2020 and reaches ~$1.57 (in May it cost almost $200)!
Celsius is probably illiquid, not insolvent. And Celsius lead investor BnkToTheFuture has a (not publicly confirmed yet) Recovery Plan, which is about giving users a number of specific tokens (worth $1), equal to the value in their account they had before the crash. And this token would be tradable on the open market.
Tesla stayed flat, and almost on the positive side, during the bear market crash, while other major stocks fell by more than 70%.
FRESH DRINK
💜Did you like this newsletter ?💜
With your feedback, we can improve it. Click on a link to vote:
Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.