Binance CEO Changpeng Zhao has issued a note summarizing his opinion on bailouts and leverage in the crypto industry. His comments arrive only a few days after reports of the rival crypto exchange FTX bailing out several large and distressed crypto companies began circulating in the media.
“Bailouts Here Don’t Make Sense”
Changpeng Zhao has voiced his opinion on bailouts and the consequences of the excessive leverage percolating the industry.
In a note published Thursday, the CEO of the world’s largest crypto exchange wrote that poorly designed, poorly managed, and poorly operated companies should not be saved. “Bailouts here don’t make sense,” he explained, stressing that the industry shouldn’t perpetuate “bad” companies but rather let them fail and allow better ones to take their place.
Zhao also stressed that the issue isn’t binary and that “not all bailouts are the same.” He argued that bailouts could remain a viable option for companies with sound business models and...
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