The founder of the largest cryptocurrency exchange said that the crypto lending field is currently quite raw, and Binance will focus on DeFi and NFT.
Changpeng Zhao said that the company could spend more than $1 billion on various acquisitions and direct investments before the end of the year, despite the fact that the market recession does not plan to end yet. Since the beginning of 2022, the crypto exchange has already allocated about $325 million for 67 projects, which is almost 50% more than in 2021.
According to the founder, Binance wants to focus on decentralized finance (DeFi) and non-fungible tokens (NFTs), unlike other companies like Voyager Digital that are interested in crypto lending:
“In recent months, we have reviewed many projects focused on crypto lending. And we can say that now this is one of the most problematic areas in the industry. Many companies simply take customers’ money and pass it on to others. There is almost no intrinsic value in such projects. What to buy in this case? We would like to invest in real projects that would be useful to people.”
The site is investing in the NFT ecosystem and fan tokens, in traditional payment service providers, Zhao lists. According to the businessman, despite the significant market drop, Binance does not stop being profitable:
“DeFi works. NFT is not just about selling images of monkeys. The use cases for this technology have not yet been explored. The technology will remain.”
Earlier, Zhao said that regulatory transparency is needed to accelerate the adoption of cryptocurrencies among ordinary users.
Source: Bits
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