Words for Binance CZ As He Plots to become Warren Buffett of Crypto Winter

“Binance CEO, Changpeng Zhao (CZ), said in an interview with Bloomberg that the leading global crypto exchange has over $1 billion to deploy on acquisitions and investments amid the bear market. CZ disclosed that the funds would be committed to supporting decentralized finance (DeFi) applications and non-fungible token (NFTs) projects to help accelerate the adoption of crypto assets.”

I had noted in the past how Warren Buffett calmed the market during the great recession: “Warren Buffett lent money to Goldman Sachs in the valley of the 2007-2008 great recession and calmed markets. Lehman Brothers was gone and many people were troubled. Buffett came out and said that he was still investing. That was a turning point for many.”

As CZ pushes to become Warren Buffett during this Crypto Winter, I want to leave these words with him: ‘Warren Buffett did not save the banks during the great recession; it was the government which did. But Buffett provided a quasi-bridge which supported the government’s playbook. Indeed, besides this Industry Recovery Fund, Binance and its peers should march to the Securities & Exchange Commission (SEC) and say: “Please regulate the cryptocurrency industry. We need help”’. 

Indeed, the most important pending innovation in the crypto industry is US government regulation. If that happens, many good things will take shape and that will make this Binance $1 billion war chest to go further. Otherwise, it is filling a leaking bucket on a long-term viewport.

Comment on Feed:

Comment 1: You’re still playing by the old rules sir. Like I said with banks, crypto is changing amd would change a lot of things, regulations are not what crypto needs. Also, crypto does not need a Warren Buffett style quasi bridge. That is s the old way of thinking. Government Regulations in the markets have failed us. Allowing a few to control the majority.

My Response: Today in crypto, there is a regulation but that is done by few men. The top 5 miners control more than 80% of all new bitcoins. In other words, 5 people print more than 80% of all new bitcoins. In exchange, the top 5 control more than 60% of all funds. Again, 5 men dominate that. When FTX collapsed, it took down at least 1 million users; many companies in Nigeria like Nextcoin, etc have fired workers because of FTX exposure. 

FTX wiped more than $200 billion on crypto in days. But who regulates FTX? SBF who said he was not even aware that the $$billions were not there.  Do not be deceived: crypto is regulated today but my few men. You better wish the power is moved from them to the government which will have the interests of everyone!

I am not sure you will keep USD or Naira if 5 men in US or Lagos control 80% of things which affect it. As we write, there is massive “regulation” in BTC and crypto but by 5-6 men, not government. 

Comment 2: Proff. Before Tekedia started accepting crypto, you had a refuting/negative PoV on bitcoin. You literally won’t accept it even if it was used in exchange from the crumbs that fell from your table.

My Response: You did not read me well. I have always supported Bitcoin as a means of exchange, not a store of value. Visit tekedia.com and all my articles are there. As I noted, nothing stops you collecting BTC from that customer in Zimbabwe and changing it to Naira (alternative is to lose that market). I am against hodling but I am bullish that it can be used to exchange value as a currency, not as an appreciating asset. We have invested in startups which built products to make it easier to accept and pay with BTC (Bitmama, etc) but will never invest in hodling companies.

Comment 3: Decentralised, but regulated…Nothing makes more sense than this.

Anything that has an idea of complete borderlessness has the potential to attract more bad than good (on the long run). Regulation creates more checks and creates balance.

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