During the Binance twitter space AMA (Ask Me Any Questions) held on Nov. 14, Binance CEO Changpeng Zhao (CZ) revealed a piece of advice for crypto investors, stressing that investors should only invest in cryptocurrency with spare funds.
CZ stated that long-term investment should be prioritized by investors given the increasing volatility that has been witnessed in the crypto market as a result of FTX exchange collapse.
He thereafter warned cash-strapped and unsophisticated individuals to stay away from trading cryptocurrencies at this point because of the unpredictability of the market.
At the same time, he also urged investors who only have funds to cover their immediate needs to stay away from cryptocurrencies because they could end up losing their money.
It would be recalled that centralized exchanges are recording historical withdrawals as many investors are now withdrawing funds to self-custody wallets.
This is not unconnected to the claim that some other centralized exchanges like Huobi and Gate.io are partially insolvent having allegedly manipulated their proof of reserve disclosure.
Meanwhile, CZ emphasized that Binance has no issue of liquidity crisis as he pointed to the robust company’s balance sheet.
He emphasized that his exchange neither owes loans nor debt. He categorically stated that Binance does not owe anybody money.
The aftermath of the FTX collapse has prompted Binance to disclose on Nov. 10 its hot and cold wallet addresses with 475k Bitcoin, 4.5M Ethereum, 17.6B USDT, 21.7B BUSD, 601M USDC, and 58M BNB.
The exchange further added that the disclosure does not contain the complete data, but only captured the major tokens; hence, all holdings will be disclosed in the full audited report.
Binance and CZ Supported Self-custodial Crypto Wallets
When asked about his view on self-custodial crypto wallets during the AMA, CZ expressed his support, stressing that using self-custodial crypto wallets during bear markets is crucial.
Although Binance is a centralized exchange, it also has decentralized protocols including Binance Smart Chains (BSC) and Trust wallet
