Changpeng Zhao, CEO of the Binance, has offered advice to the cryptocurrency community in response to the recurrent cases of cryptocurrency platforms blocking users’ accounts and preventing them from accessing their funds.
CZ Says Binance Is Profitable
On July 21, CEO Zhao tweeted, “Choose exchangers carefully. Avoid exchanges that require funding to operate. He made a remark in response to the report that the Singapore-based cryptocurrency exchange Zipmex has stopped accepting withdrawals of digital currency “until further notice.”
Another one bites to the dust.
Choose exchanges wisely.
Avoid exchanges that need to raise money to survive. https://t.co/iSSDGGaUNL
— CZ ? Binance (@cz_binance) July 21, 2022
What assurance do you have that your exchange won’t go nowhere? asked Twitter user @ksa crypto2030 in response to his statement. Assuringly, CZ said, “Nothing is risk-free. At least our company is successful and sustainable. In addition, Binance is the biggest cryptocurrency exchange, with a 24-hour trading volume of about $20 billion.
Related Reading | Celsius Network Lawyers Argue That Users Have No Right To Their Crypto
Zipmex Is The Latest Fail
Speaking of Zipmex, the platform just joined the ranks of cryptocurrency companies that are fighting for survival. The exchange blamed the move on “a mix of variables beyond” their control” in a press release on July 20, 2022, and cited erratic market conditions as the cause. The press statement stated:
“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice,” said the exchange.
Despite the fact that Zipmex advertised itself as a “leading digital asset exchange providing high liquidity and insurance” for consumers’ assets on Twitter. However, a recent event has disproven the statement.
BTC/USD trades at $23k. Source: TradingView
However, the Celsius Network is said to have been the first cryptocurrency network to recently forbid users from accessing their cash. The company has been named in a number of devastating articles on how it planned its demise.
Since Terra’s $40 billion collapse in May, a number of hedge funds and cryptocurrency lenders, including Three Arrows Capital, Celsius, CoinFLEX, Babel Finance, Vauld, and BlockFi, have all blocked withdrawals similar to Zipmex due to severe liquidity issues. Last week, troubled Celsius submitted a Chapter 11 bankruptcy petition.
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Featured image from Getty Images, chart from TradingView.com