Binance CEO Changpeng Zhao took to Reddit earlier today to discuss a variety of topics, including investment advise that he gives but doesn't necessarily follow.
“Investment wise, I am not a good example. I don’t diversify,” Zhao said. “I recommend most people to diversify. But for me, I am all in Binance.”
He added that he's “all in crypto, BNB, and BTC. I use my Binance Card everywhere I go.”
The 44-year-old, who previously worked at the Tokyo Stock Exchange developing trading systems and at Bloomberg Tradebook on futures trading systems, began Binance in 2017. According to Forbes, he holds a total of 30% stake in the company and currently is the 19th richest person in the world, with a net worth of $17.4 billion.
In a wide-ranging AMA—that apparently was taken down shorty after it finished—Zhao answered a variety of questions, including Binance’s decision to trade LUNA despite its collapse, how Binance handles user funds, and the future of the Binance Chain.
Thanks for all your questions. Answered as many as I could.
Seems @reddit has taken the AMA thread down. Working to get it back so you can see my answers.
— CZ 🔶 Binance (@cz_binance) May 21, 2022
In a response to a question on why Binance resumed the trading of LUNA, Zhao explained it had been halted because of the network being halted by the validators. He added that it was Binance’s trading that put pressure on the validators to resume.
“We suspended trading briefly when the validators paused the blockchain, even that caused a lot of complaints,” he wrote. “But I believe our action forced the validators to resume the network within a couple of hours.”
Zhao also emphasized the overarching lack of bias in markets.
“Lastly, no one is forcing anyone to buy just because trading is on. There are high-risk tolerance buyers willing to take over from sellers,” he said replied in the AMA. “The marketplace is neutral.”
To a question about the centralized nature of the Binance Chain, Zhao responded that its low validator count helps in achieving faster transactions. He also said he's not involved in such decisions but would bring it up with the chain's core developers.
“My limited tech understanding is there is a trade-off between a number of nodes vs performance at this time of our blockchain evolution,” Zhao said.
When it comes to user funds on the world's largest crypto exchange by volume, Zhao clarified that those are never mixed with the company's operational funds. In the event of any bankruptcy or similar event, he promised that “funds would be refunded to users first, before any shareholders.”