CEO of cryptocurrency platform Binance explains why crypto companies fail

Changpeng Zhao, CEO of the cryptocurrency platform Binance, shared his opinion on the market situation and the reasons for the bankruptcy of some companies. According to Zhao, the collapse of crypto platforms is caused by the inability to manage funds in a balanced manner during the crisis.

According to Changpeng Zhao, in his new interview with TechCheck CNBC, many players in the crypto world were not prepared for the bear market and did not fully calculate all possible risks.«I believe that many players do not know how to manage their assets. For many platforms, this may be their first bear market. Binance has already gone through several such periods, so we know exactly what to do and how to protect our funds,» Changpeng Zhao explained.

Earlier, the Binance CEO emphasized the company’s readiness to help some cryptocurrency platforms maintain their positions in the market, but at that time, Changpeng Zhao stressed that many companies would be forced to save themselves. The founder of Binance noted that some firms and their products are improperly designed and misused. According to him, such «losers» will be replaced by better projects, so there is no need to bail them out.