Changpeng Zhao: Binance is in "rescue talks" for over 50 companies

Cryptocurrency exchange Binance intends to help industry participants who are experiencing a "slight shortage"liquidity” and conducts relevant negotiations with more than 50 companies. The head of the platform, Changpeng Zhao, spoke about this in the Bankless podcast.

According to him, the crisis in the digital asset market is leading toto the consolidation of the industry – more successful players are trying to enter the capital or acquire projects that have problems. 

On July 1, BlockFi CEO Zach Prince revealed that the US division of the FTX exchange will issue a $400 million revolving loan to the landing platform and will receive an option to buy the company for $240 million.

Zhao noted that Binance could have been the first to take advantage of the acquisition opportunity, but did not do so. 

"Those deals that you see in the news are usually the first to be contacted.I'm sure we have the largest cash reserve right now," he said.

CEO of the exchange said that the liquidity crisis onmarket increased the number of transactions in the US. The US division of FTX has focused on local companies, while Binance has a more global reach, he said.

He stressed that exchanges do not compete in this matter. Zhao also reiterated his thesis that "not all projects are worth saving."

"We don't want to bail out companies that are poorly managedWe are currently in talks with more than 50 of them," the head of Binance said. 

According to Zhao, his organization is comfortablefeels in a bear market thanks to large cash reserves and an understanding of the cyclical nature of what is happening. The billionaire expects to use the current situation to expand the staff of specialists.

"By the end of the year, we want to increase the number of employees to 8,000 ," he said.

Recall that in June 2022, Zhao said that the crypto winter is a good time to expand the team and further develop the business through various acquisitions. 

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