The chief executive officer of the Binance crypto exchange shared his opinion on the bailout of crypto companies by taking the reference of recent collapse of some leading crypto projects.
Binance is a leading crypto exchange in the crypto industry because of its quality services, which makes crypto traders do trading confidently without caring for any tension regarding the security of the crypto funds on the exchange. Changpeng Zhao is CEO of this exchange and he is one of the richest people in the crypto industry because of his progressive crypto business with the Binance exchange.
As all of us know very well about the current situation of the crypto industry where it is in recovery mode after several significant downfall in the prices of leading crypto assets.
In the current situation, Crypto lending platform Celsius is currently in a critical situation where it is on the verge to file bankruptcy, as per the WSJ report.
Secondly, the whole crypto industry saw the collapse of the Terra ecosystem, where Terra UST & Luna coin touched ground price.
Overall we can say that, under extreme market conditions, bad business model-backed crypto companies faced significant problem.
In this situation, Binance CEO Changpeng Zhao shared his own opinion and said that bailouts of crypto projects meaning is different for different people.
“bailout” can have different meanings to different people. And as with most things in the real world, it’s not a binary situation.”
In particular, Zhao pointed out three types of projects which are Poorly designed (no product-market fit), Poorly managed, and Poorly operated.
Zhao asserted that poorly designed business model-based projects should not be saved, in favor of crypto Investors & industry.
Further Zhao added that such companies should quit and get out of this industry and new suitable players or Companies should come to take the same position.
“Bailouts here don’t make sense. Don’t perpetuate bad companies. Let them fail. Let other better projects take their place, and they will.”
Read also: Celsius at the verge of Bankruptcy