Changpeng Zhao (CZ), CEO of Binance, the richest person in the crypto industry, has assured that if the Binance platform goes bankrupt, users will be reimbursed first before the company’s shareholders.
Speaking at a Q&A event on Reddit, Changpeng Zhao made a statement on different topics such as his decision to continue trading Terra (LUNA) despite its collapse, how Binance manages user funds, and the future of Binance Chain.
“Users come before shareholders, if you have a problem with this situation, bye,” Changpeng Zhao said.
Users before shares.
If you have a problem with the above, bye.https://t.co/Ab87W4FEIG
— CZ 🔶 Binance (@cz_binance) May 23, 2022
“In Bankruptcy or Similar Situation, Users Will Be Refunded Before Company Shares”
CZ said that the operational funds of the company were never mixed with the funds of cryptocurrency exchange users. Changpeng Zhao also assured investors that “the funds will be returned to the users before the company shareholders” in the event of any bankruptcy or similar.
Talking about the centralized structure of Binance Chain, CZ said that thanks to the low number of validators, the network can perform transactions faster:
“I think there is an inverse relationship between the number of nodes and the performance of the network at this time of blockchain development.”
CZ: “My Entire Investment Is Based On Binance”
Changpeng Zhao also gave some messages to investors:
“I am not a good example in terms of investment. I do not diversify my investments. I advise most people to diversify. But all my assets are based on Binance.”
Changpeng Zhao also completely cryptocurrencies, BNB and to BTC He said that he invested and used his Binance Card for shopping wherever he went.
Changpeng Zhao, popularly known as CZ, previously worked as a developer at the Tokyo Stock Exchange and Bloomberg Tradebook, founded Binance in 2017.
According to Forbes, CZ owns a total of 30% stake in the company and is currently the 19th richest person in the world with a net worth of $17.4 billion.
*Not investment advice.