Cryptocurrency exchange Binance allocates $ 1 billion to buy failed projects

Changpeng Zhao, CEO of cryptocurrency exchange Binance, shared the platform’s plans: by the end of the year, Binance will spend more than $ 1 billion on investments and acquisitions of bankrupt projects.

According to Zhao, earlier this year, the exchange has already allocated $ 325 million for 67 projects in need of support. Binance also invested another $ 200 million in Forbes and provided $ 500 million to Elon Musk to buy Twitter. «In recent months, we have been approached by many lenders. Some of them just take the money and give it to someone else. There is no intrinsic value in this. What is there to buy then? We want to see real products that people will use ,» emphasized Changpeng Zhao.

Zhao emphasized that despite the unstable situation in the cryptocurrency market and the global economy in general, Binance is still profitable and will continue to grow. «A bear market means a lot of dangers and a lot of pain. But also a lot of opportunities,» Changpeng Zhao shared his point of view.

At the end of June, Binance CEO said that the exchange would not help unsuccessful projects, but would make every effort to support promising platforms. Changpeng Zhao noted that some companies and their products are not well designed and are not properly operated. Therefore, according to him, such «losers» will be replaced by better projects, and therefore there is no need to rescue them. «Some of the low-quality projects have a large number of users, partly due to 'creative' marketing and Ponzi schemes,» Zhao added at the time.