Binance CEO Changpeng Zhao strongly recommended that investors should not put all their eggs in a basket. Although the CEO is concerned all about crypto, he doesn't advise anyone to have investments only in crypto.
Changpeng Zhao made this statement, among others, on Reddit in the early hours of today. He advised that although all his investments are in crypto, he doesn't advise investors to do the same. he stated
"Investment-wise, I am not a good example. I don't diversify," Zhao said. "I recommend most people to diversify. But for me, I am all in Binance."
He further stated that all his investments are in Binance, BTC, and BNB."I recommend most people to diversify. But for me, I am all in Binance, BTC, and BNB; I use my card everywhere I go."
Changpeng Zhao, popularly known as CZ, is a Chinese-Canadian businessman and the CEO of Binance, the world's largest cryptocurrency exchange by trading volume. CZ previously worked at Bloomberg Tradebook on future trading systems and at Tokyo Stock Exchange, where he developed trading systems.
The 44-years old CEO began Binance in 2017 and has 30% of the company. According to Forbes, Changpeng Zhao is the 19th richest man globally, with $17.4 billion.
In an AMA that trended, Changpeng Zhao answered an array of questions: the future of the Binance Chain, Binance's decision to trade LUNA, and how Binance handles users' funds.
In responding to a question about the Binance – the decentralization of the Binance Chain, CZ has this to say,
"My limited tech understanding is there is a trade-off between a number of nodes vs performance at this time of our blockchain evolution."
He further added that the Binance chain has low validators, which contributes to the fast rate of processing transactions.
Regarding how Binance handles users' funds, CZ clarified that shareholders' funds are not mixed with users' funds. And in cases of bankruptcy, it explained that the company would not combine shareholders' funds with users' funds so that users would get refunded first before shareholders.
Finally, Changpeng Zhao responded to a final question on why Binance resumed trade with LUNA despite its collapse. The CEO explained that the exchange did not intend to pause transactions but had to excuse LUNA validators that halted its network. However, not minding the pause, Binance continued trading, putting some pressure on LUNA's validators to resume trading.
"We suspended trading briefly when the validators paused the blockchain, even though that caused a lot of complaints," he wrote. "But I believe our action forced the validators to resume the network within a couple of hours."