Binance CEO Changpeng Zhao has strongly advised cash strapped and inexperienced investors to stay away from trading cryptocurrencies amid extreme market volatility.
Binance the CEO suggested that unsophisticated investors to wait out the turbulent period instead of risking money needed for living expenses. For those who do have that spare cash, Zhao advised inexperienced investors and traders to think twice before deploying capital into the market in the near future.
The spike in market volatility comes as the FTX crisis has had a negative effect on the whole industry particularly a number of centralized exchanges that have had to temporarily halt withdrawals. Zhao confirmed that no such issues exist at Binance.
He further confirmed that Binance experienced withdrawals following the FTX collapse and several other events that led to a fall in community trust for centralized exchanges. He iterated that even in the event that Binance collapsed the platform still wouldn’t block its users from withdrawing their funds.
While the Binance exchange itself is centralized, Zhao emphasized that the company’s investment partners include both centralized exchanges and decentralized protocols to provide users with choices and support entrepreneurs to build.
