The crypto market has been experiencing significant setbacks during this bear market. Binance CEO CZ is one of the many crypto investors who have frequently invested in other crypto projects to boost their growth. Despite the occasional financial boosts from CZ and Sam Bankman’s FTX, some crypto projects have mainly remained unsuccessful.
Despite the prevalence of the bear market, Binance CEO is still optimistic about crypto projects. In a recent interview by Bloomberg, Changpeng Zhao, Binance’s CEO, mentioned that Binance could invest more than $1 billion into various deals this year.
The comments come recently after Sam Bankman, the Founder of the FTX crypto exchange platform, also mentioned that they could spend up to $1 billion on other crypto projects. It is evident that crypto exchange platforms have remained profitable despite the persistent bear market that has shed off billions from the entire crypto market cap.
According to reports, the Binance crypto exchange platform has spent more than $325 million on close to 67 various projects and another $200 million on Forbes throughout the year. If they spend $1 billion more, the figure could go over $ 2 billion in 2022 since the crypto exchange also has committed $500 million to Twitter’s buyout by Elon Musk.
Binance CEO, CZ; The future of NFTs
The Binance CEO also explained in detail how the NFT industry is of great interest to him and Binance. According to him, the field is largely underdeveloped, and much more should be expected from NFTs.
Binance’s focus on NFTs clearly indicates that they believe there could be more to offer. According to CZ, Non-Fungible Tokens are not just about selling works of art and pictures of monkeys online. The NFT technology can evolve to allow the issuance of University Degrees, Event Tickets, and more. He expressed sentiments that the NFT field is still young, and more development would yield real-world solutions.
Binance strategy; reinvesting in crypto projects
Since the crypto boom, there have been several projects, but very few actually provide real-life solutions. The Binance CEO mentioned that scrutinizing crypto lenders revealed that many are not offering any value. Essentially, it looked like most lending platforms just take money from one user and lend it to another. Such platforms do not offer real solutions and therefore lack intrinsic value.
Binance seeks to focus on real projects with value. Crypto projects that provide authentic products that people can use are of significant interest to the crypto exchange company. Such projects could benefit from the $ 1 billion investment funds Binance is ready to spend this year.
The crypto market is continuing to grow as new products continue to surface. The profitability of crypto exchange platforms like Binance and FTX has been an enormous boost to the crypto industry, allowing these profitable ventures to earn enough and reinvest their profits into the industry to sustain genuine but struggling projects.