The CEO of Binance, Changpeng Zhao, has announced that he only holds Bitcoin and Binance Coin in his investment portfolio. Zhao stated that the Bitcoin in his portfolio was bought in 2014, during the cryptocurrency’s early years.
Zhao noted that Binance Coin made the largest part of his investment portfolio in an interview with Associated Press. BNB is the native token powering the Binance ecosystem. The token ranks among the top ten largest coins by market capitalization.
Zhao does not have a diversified portfolio
Zhao did not disclose the exact amount of Bitcoin tokens that he has in his portfolio. He stated that while he had spent part of his holdings, he was still holding on to the majority of the tokens.
“I bought some bitcoins in 2014. I spent a little bit of it over time, but I held onto most of it. I did not sell,”
Despite leading the largest cryptocurrency exchange globally, Zhao noted that he does not have a diversified portfolio of different coins, tokens, or projects. He noted that his only crypto investments are BTC and BNB. He further stated that he holds no personal equity in any crypto projects to avoid a potential conflict of interest.
“Personally, don’t hold any other coins… I personally do not own equity in any other project, crypto or not. I do this very deliberately because I don’t want any potential conflicts of interest,”
Zhao says he doesn’t get meme coins
Zhao also talked about meme coins, stating that he does not understand these cryptocurrencies but noted that they represent the true nature of decentralization. He noted that these coins have value because of many people in the community who like the meme token.
Meme coins have rallied significantly this year due to increased popularity among retail investors. Dogecoin and Shiba Inu have rallied by almost 5000% and 70,000,000%, respectively, this year. Comparing this to the percentage increase in Bitcoin has made small-scale investors prefer meme coins to established tokens.
“Dogecoin has lasted so many years. It’s gone up and down, up and down, but it’s lasted. And now we have Shiba, which is also a meme coin. We have a lot more meme coins. But guess what? For something to be valuable, you only need one other person to want to buy it.”
Zhao further stated that meme coins have liquidity because they have many people who are buying and selling the tokens. He noted that once an asset has liquidity, it has value in the neutral market; hence he was not in a position to state whether or not meme tokens had value.
Zhao’s recent remarks come at a time when the exchange is fighting to achieve regulatory compliance. Earlier this year, Binance faced much regulatory scrutiny from different countries, and it has several of its licenses revoked. To achieve regulatory compliance, the exchange hired several former government officials to head different departments.
In a recent interview with CNBC, Zhao also stated that the exchange was working to be a bridge between the traditional finance sector and decentralization. To achieve this, the exchange was working on having a centralized structure that involved setting up headquarters and ensuring that it could have physical offices that would guarantee the exchange functions like a normal financial institution.