Post
Topic
Board Exchanges
Re: Three Big Lessons from CZ.
by
tabas
on 10/11/2022, 08:32:43 UTC
Lesson for project owners from CZ
1. Never use a token you created as collateral
2. Don't borrow if you run a crypto business.
3. Don't use capital "efficiently". Have a large reserve

Binance has never used BNB for collateral, and we have never taken on debt. .

There's one thing that's wrong with FTX and its FTX token. They've been holding a lot of it and the total market cap of it, is more than from what they're having from their reserve. It means that they've been holding it more than what its market has so if they dump, the entire market cap will be gone from so quick. While in having related to finance and crypto business like exchanges, it's essential for them to start asking money for their operations if they see that they can pay the debt well. This is endangering most of the other services that we may be enticed with and that's why the usage for exchanges is just to trade and exchange there and making us to trust them more like with those % APY offerings.