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The Binance exchange CEO said the company will only focus on Web3 and is eyeing acquisitions, with no intention of offering securities trading at all.
Through a recent announcement on Decrypt’s GM Podcast, Changpeng Zhao (CZ) shared the view that it is neither right nor wrong for cryptocurrency exchanges to provide additional stock trading features. It’s just that for him, stock trading just doesn’t follow the philosophy this leader outlined for the company.
The above statement was made in the context of a strong correction in the market. As some organizations start to change direction to attract more users to their platforms. For example, FTX has opened 0% commission stock trading and stablecoin securities payment gateway since mid-May.
“We don’t have any plans to trade securities,” said CZ, drawing the line between Binance and some of the counterweights – “We just think we won’t be launching a service any time soon. financial brokers”.
In fact, stock trading is a lucrative market with many retail investment platforms, such as Robinhood and Webull. However, CZ wants Binance to focus on building more Web3 tools.
“We are a pure Web3 company,” said CZ. “We’re not going back, we’re moving forward.”
The CEO added that Binance is eyeing a number of companies as potential acquisition targets during the bear market situation, and none of them are involved in a traditional stock exchange. CZ also suggested that potential deals would likely be “simpler” than a complex loan structure or bailout.
“That doesn’t mean complicated transactions are bad,” CZ said. “But my preference is to keep things very simple, to be simple, to boil things down to very basic core principles, and to go from there.”
This share by CZ likely alludes to a $500 million line of credit extended to Voyager Digital by Alameda Research foundation, founded by crypto billionaire Sam Bankman-Fried, who is also CEO. of the FTX.
In May, Bankman-Fried bought a 7.6% stake in Robinhood. According to a source from Bloomberg last month, Bankman-Fried was interested in buying stocks and a cryptocurrency trading app in an attempt to “take over.” However, Bankman-Fried denied the report, saying: “There is no active M&A conversation about Robinhood currently taking place.”
In addition, most recently Binance has cut its investment in Sky Mavis and is accused of bypassing the US, aiding Iran to avoid sanctions.
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