Binance CEO ‘didn’t see’ Tesla selling Bitcoin affect BTC price

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2022-07-27 19:39:40

The CEO of the world’s largest cryptocurrency exchange Binance has made his first comments before Tesla chose to sell up to 75% of its Bitcoin holdings.

Binance CEO commented on the latest move of billionaire Elon Musk

Interview with Fox Business Last weekend, Binance CEO Changpeng Zhao said that people should not delve into and pay too much attention to how Tesla CEO Elon Musk makes money with Bitcoin.

“Elon Musk is a smart guy, but that doesn’t mean he owns all the precious assets in the world. Musk may not hold many quality company stocks or valuable cryptocurrencies.

Just because he buys Bitcoin doesn’t mean BTC will get better or because selling Bitcoin, BTC gets worse.”

Next, CZ mentioned the moves of Bitcoin “whales”, he said that no matter what they are doing, Bitcoin still proves its ability both in terms of structure and popularity among users.

“The fundamentals, the use cases, the number of users and the community are still there. The fundamental properties of Bitcoin do not change because one person bought or sold them.”

On July 21, Tesla revealed to sell 75% of its BTC holdings, earning $936 million in the second quarter of 2022. The reason they explained was the desire to increase cash reserves in the context of the Covid-19 situation in China affecting the company’s business.

However, CZ commented that he did not see a clear motive for Tesla deciding to sell Bitcoin.

“No one knows why Elon Musk buys or sells Bitcoin. Maybe he needs cash for Tesla or trying to buy Twitter or something, I don’t know. But this doesn’t really make much sense. “

On the same day, in a conversation with a CNBC reporter, the second-richest CEO of the cryptocurrency market also expressed his thoughts on the widespread “contagion” of the recent liquidity crisis. He pointed to a very low level of exposure between Binance and faltering companies like Celsius, Voyager or the “criminal” investment fund Three Arrows Capital (3AC). CZ also said that Binance has no debt or creditor relationship with these companies.

(See more video interview)

Perhaps Binance soon realized the risks of being exposed to the above “names”, as the exchange avoided lending as much as possible. Or typically, the declaration of not “rescuing” crypto units adversely affects the market. The opposite view of billionaire Sam Bankman-Fired has even caused the two leaders to argue fiercely.

“We wanted to do things in a simple way. Binance is an exchange and that is why we are not in the lending business.” – Chengpeng Zhao spoke.

When asked if he has sold any Bitcoin since the “cold days of crypto winter” happened, CZ candidly said that he personally kept almost all the crypto he bought at the beginning. The billionaire emphasized that he spends very little of his accumulated crypto assets. In the past, this man also claimed to be willing to give away 99% of his fortune.

“I have no cash. Everything I have is in crypto. I have *all in* them, so I don’t have to think about selling because crypto is all I have.”

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