These Are the Types Crypto Projects that Could be Bailed Out According to Binance CEO
Bailouts are not inherently wrong and can be done for crypto projects as long as they happen only for projects that “are fixable” and “have potential,” according to Binance CEO Changpeng Zhao (CZ).
The clarification from the Binance CEO comes after Alameda Ventures, the venture arm of FTX's parent Alameda Research, bailed out the crypto platform operator Voyager Digital. The bailout – which has become a topic of discussion in the crypto community – came after the troubled crypto hedge fund Three Arrows Capital apparently failed to repay a loan to Voyager.
In his article, published on Binance’s website, CZ said there are many projects, in crypto or elsewhere, that should not be bailed out. According to him, these all fall into one of the three following categories:
Bailouts for projects that fit into one of these categories “don’t make sense,” CZ wrote.
“Don’t perpetuate bad companies. Let them fail. Let other better projects take their place, and they will,” he added.
For other types of projects, however, CZ said bailouts can make sense. These include projects that “have problems but are fixable,” and projects that are “barely surviving but have great potential.”
For the first of these, he said bailouts can be done as long as “changes are made to fix the problems that led them to this situation in the first place.”
Meanwhile, CZ hinted that projects that have great potential but struggle financially are among the most attractive to companies looking to make acquisitions and that this is something Binance has worked on in recent weeks.
“Many projects have come to us who want to engage and talk,” CZ said, admitting that the categories he outlined are “are not clear labels.”
“All projects view themselves as the third category, and
Read more on cryptonews.com
