See More

Binance CEO Says Hold, But Don’t Buy Crypto

2 mins
Updated by Sheikh Bilal
Join our Trading Community on Telegram

In Brief

  • Binance CEO Changpeng Zhao advised investors not to buy crypto given the volatility cause by the FTX collapse.
  • However, he believes in the crypto markets’ recovery, having recently launched a recovery fund, and suggesting crypto investors hold.
  • MicroStrategy’s Michael Saylor also said the FTX collapse would help the market mature, but rather through greater regulation.
  • promo

Binance CEO Changpeng Zhao cautioned against investing during this period of upheaval, but is confident about the crypto market recovery.

During a recent AMA on Binance’s Twitter page, the exchange’s chief executive offered some timely advice for investors. “You should not invest in crypto,” Zhao said.

He clarified, saying that investors should only use disposable income to invest in digital assets. “You should only be using discretionary cache that you don’t need for a long time, like maybe a couple of years,” he said.

For current holders of crypto, Zhao suggested that these investors continue to hold. Given the collapse of FTX last week, and its continued fallout, Zhao said the market would remain highly volatile.

“Unless you’re very experienced, very mature, very confident, and can handle the risk, I would recommend most people just hold for this period of time,” Zhao concluded. 

Binance CEO Believes in Crypto Projects

Zhao also referred to the crypto recovery fund he announced earlier this week in a similar light of persistence. Despite the large number of projects affected by FTX, he said that many deserved to persevere. “Good projects, good products, good community, good team,” he said. “We want to help those projects to survive this turmoil.”

The Binance CEO said that several other funds with solid liquidity had expressed support for the fund. He added that the recently diminished valuations of many projects made it a good time to invest in them. “The projects that survive this difficult time are actually going to be much stronger later on,” he said.

Saylor Comments On Growth

Last week, MicroStrategy co-founder and Bitcoin supporter Michael Saylor also said recent events would help the industry mature. However, rather than further developing crypto projects, he said development would come through regulation and institutional investment.

Michael Saylor interviewed by CNBC.

Saylor said that the FTX collapse would very likely force regulators to take greater action within the industry. The clarification regulators would then provide, he said, would enable institutions to feel more confident about making greater investments. “The industry needs to grow up, and the regulators are coming into this space,” the MicroStrategy co-founder said. “We’re all just going to grow up, and the world is going to benefit from that.”

Take With a Grain of Salt

However, Saylor’s perspective should be taken with a grain of salt. The architect of his company’s Bitcoin strategy was forced to resign as CEO earlier this year, after it cost MicroStrategy over $900 million in losses over a single quarter.

Crypto Twitter has also been very skeptical about recent news about disgraced FTX ex-CEO Sam Bankman-Fried. They lambasted a recent New York Times article on Bankman-Friend, which they felt was not critical enough. Additionally, Bankman-Fried’s intentions to potentially “restart” were met with scorn.

Top crypto platforms in the US | April 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

photo_Nick.jpg
Nicholas Pongratz
Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage.
READ FULL BIO
Sponsored
Sponsored