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The CEO of the world’s largest crypto exchange Binance said that against the background of a falling market, it is short-sighted to invest in one or two cryptocurrencies, it is better to diversify the portfolio as much as possible.
Changpeng Zhao, during a question-and-answer session on Reddit, called on investors to diversify, acknowledging that he adheres to the opposite strategy:
“In terms of investment, I’m not a good example. I’m not diversifying. My portfolio is represented by Binance, all in BNB and BTC. I use my Binance Card everywhere I go.”
In response to a question about why Binance resumed trading LUNA, Zhao explained that the purchase/sale was temporarily stopped due to the shutdown of the network by validators. And he added that it was the actions of the exchange that forced the validators to resume work:
“No one is forcing anyone to buy just because the bidding is going on. There are buyers with a high tolerance for risk.”
Zhao explained to users dissatisfied with the centralization of the exchange that such management involves a small number of validators and helps speed up transactions. He noted that he is not involved in making such decisions, but will discuss this issue with the main developers of the network:
“My limited technical understanding is that at this stage in the evolution of our blockchain, there is a trade-off between node count and performance.”
The CEO hastened to assure that the assets of users are never mixed with the operating funds of the company. In the event of bankruptcy or any such unpleasant event, Zhao promised that “the money will be returned primarily to users, not shareholders.”
In May, Dogecoin co-founder Billy Marcus (Billy Marcus) called 95% of crypto assets garbage, because of which investors lose millions of dollars.
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