Binance will not trade stocks. "This contradicts our philosophy," the head of the exchange said
The largest cryptocurrency exchange Binance is not interested in offering users the opportunity to trade stocks. Regardless of how many new customers it may attract, the exchange's CEO Changpeng Zhao told Decrypt.
Moreover, the head of Binance does not condemn crypto exchanges that do this. It's just that stock trading doesn't fit his company's philosophy.
The cryptocurrency market is facing another crisis, so trading platforms are seriously thinking about how to attract new customers in conditions of fierce competition and acute shortage of funds. For example, in May, the FTX cryptocurrency exchange began offering clients the opportunity to trade stocks.
"We have no plans to turn to traditional exchange trading," Zhao explained, emphasizing the difference between Binance and at least one of its serious competitors.
And although stock trading has proven to be a lucrative market for many retail investment platforms, such as Robinhood and Webull, the Binance CEO wants the company to focus on creating more Web 3.0 tools.
"We are doing purely Web 3.0,- Zhao explained. "We are not going back, we are moving forward."
He added that Binance is considering acquiring several companies during the current bear market, but none of them will deal in stocks. Moreover, the purchase of new companies will not take place in the form of an act of charity or the issuance of an indefinite loan. Everything will be much easier, Zhao promises.
"This does not mean that complex transactions are bad. But I prefer to always make everything very simple, very clear, reduce everything to very simple basic principles and dance from them," said the head of Binance.
Zhao apparently hinted in this way at a $500 million credit line provided to the bankrupt crypto broker Voyager Digital by Alameda Research, founded by crypto billionaire Sam Bankman-Freed (part-time CEO of FTX).
In May, the head of FTX also bought a 7.6% stake in the Robinhood investment and stock trading platform, and last month Bloomberg reported that he was interested in buying an application for trading stocks and cryptocurrencies, but he denied the rumors, saying that there are currently no talks about a merger and acquisition of Robinhood.
https://coin-signal.com/cryptonews/binance-will-not-trade-stocks-this-contradicts-our-philosophy-the-head-of-the-exchange-said/
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