George Miller
Changpeng Zhao, co-founder of Binance, has warned Bitcoin (BTC) investors to tread carefully as the cryptocurrency approaches record prices. Bitcoin recently hit an all-time high (ATH) nearing $79,000, contributing to a significant upswing in the overall crypto market, which has benefited other major cryptocurrencies like Ethereum (ETH) and Solana (SOL).
Advice from CZ on Navigating the Crypto Market
In a recent update on X (previously Twitter), Zhao highlighted the significance of managing risks and advised investors to brace for market volatility following Bitcoin’s surge. He stated, “As #bitcoin makes successive new all-time highs, apply proper risk management.” Additionally, he urged investors to “control your greed” and advised against concentrating all investments in a single opportunity.
“Don’t put all your eggs in one basket. Ape slowly,” he cautioned, discouraging impulsive investing. His comments come amidst a wider rally in the crypto market, where investors are cautiously hopeful. Despite Bitcoin’s upward movement, Zhao reminded his audience that the market could experience both “dips and highs” in the future. He encouraged investors to stay rational and diversify their portfolios to lessen the impact of possible downturns.
As #bitcoin makes successive new all-time highs, apply proper risk management. There will be many dips (and highs) in the future. Make sure you can handle them. Control your greed. Don’t put all your eggs in one basket. Ape slowly.
— CZ BNB (@cz_binance) November 8, 2024
Despite recently resigning as CEO of Binance, Zhao continues to be a prominent figure in the crypto arena. His recent communications demonstrate his ongoing commitment to the field. His participation in Binance and blockchain initiatives has come under scrutiny due to ongoing regulatory issues.
After serving a four-month jail sentence related to regulatory matters at Binance, Zhao is back in the spotlight. He has expressed renewed interest in blockchain tech, artificial intelligence (AI), and biotechnology, and has mentioned intentions to divest his stake in Binance, which has sparked conversations about his future role in the crypto industry.
A Reflection on the FTX Situation
Zhao also reflected on Binance’s past with the failed exchange, FTX. As the anniversary of FTX’s collapse approaches, a user on X reminded others of Binance’s brief consideration to acquire the exchange. FTX, under the leadership of Sam Bankman-Fried, collapsed due to financial mismanagement and customer fund misuse.
Binance initially explored the possibility of acquiring FTX and even signed a non-binding letter of intent but then withdrew over concerns regarding FTX’s financial health. Zhao humorously remarked that it seemed to have happened “two decades ago,” indicating the rapid changes and instability in the crypto world.
Bankman-Fried, now serving a 25-year sentence for his conduct during the collapse of FTX, diverted billions of dollars in customer funds, severely damaging the once-prominent exchange’s reputation. The failed acquisition attempt between Binance and FTX is now a notable moment in the crypto industry’s history and highlights the sector’s inherent risks.