Binance CEO: Avoid Crypto Exchanges That Need Funding To Survive

Changpeng Zhao, CEO of the Binance, has actually provided suggestions to the cryptocurrency neighborhood in action to the persistent cases of cryptocurrency platforms obstructing users’ accounts and avoiding them from accessing their funds.

CZ Says Binance Is Profitable

On July 21, CEO Zhao tweeted, “Choose exchangers carefully. Avoid exchanges that require funding to operate. He made a remark in response to the report that the Singapore-based cryptocurrency exchange Zipmex has stopped accepting withdrawals of digital currency “until further notice.”

What guarantee do you have that your exchange won’t go no place? asked Twitter user @ksa crypto2030 in action to his declaration. Assuringly, CZ stated, “Nothing is safe. At least our business achieves success and sustainable. In addition, Binance is the greatest cryptocurrency exchange, with a 24-hour trading volume of about $20 billion.

Related Reading | Celsius Network Lawyers Argue That Users Have No Right To Their Crypto

Zipmex Is The Latest Fail

Speaking of Zipmex, the platform simply signed up with the ranks of cryptocurrency business that are defending survival. The exchange blamed the carry on “a mix of variables beyond” their control” in a news release on July 20, 2022, and mentioned irregular market conditions as the cause. The press declaration mentioned:

“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice,” stated the exchange.

Despite the truth that Zipmex marketed itself as a “leading digital asset exchange providing high liquidity and insurance” for customers’ possessions on Twitter. However, a current occasion has actually disproven the declaration.

BTC/USD trades at $23k. Source: TradingView

However, the Celsius Network is stated to have actually been the very first cryptocurrency network to just recently prohibit users from accessing their money. The business has actually been called in a variety of ravaging posts on how it prepared its death.

Since Terra’s $40 billion collapse in May, a variety of hedge funds and cryptocurrency lending institutions, consisting of Three Arrows Capital, Celsius, CoinFLEX, Babel Finance, Vauld, and BlockFi, have all obstructed withdrawals comparable to Zipmex due to serious liquidity problems. Last week, bothered Celsius sent a Chapter 11 insolvency petition.

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Michael Evans

Professional writer, editor, and producer with over a decade of experience. I'm an experienced editor who has written for a variety of publications, and I specialize in editing non-fiction articles, news, and business blogs.

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