Binance is the largest crypto exchange globally, and they are investing a lot to upgrade its technology and build new infrastructure. Reports suggest that Binance is going to spend $1 billion by year-end on acquisitions and new projects. The CEO of the exchange Chengpeng Zhao (CZ), says they have a lot to build, and Binance will be continuously working towards that.
Binance is going to spend $1 billion by year-end
Being the largest crypto exchange globally, Binance is still in profits even during the bear market. This was reported by CZ even though he did not state any solid numbers. CZ also said that Binance has invested in 67 projects in 2022, amounting to $325 million, even after the bear market began. This is a huge jump from the $140 million they put into 73 projects last year. The game is in the numbers; if only 10% of these projects become big, Binance will not only recover their investment but make huge returns.
However, investments and acquisitions are not the exchange’s main focus. They are currently allocating the majority of their funds towards building Binance into an even better and larger platform. Reports suggest that they will be investing in Elon’s Twitter deal and even in some small e-commerce companies in 2022.
Major DeFi and NFT investments coming ahead
Binance’s CEO is more into investing in decentralized finance projects and NFTs. So, we could be seeing that a lot more in the near future. CZ also stated that NFTs and DeFi are a lot more than selling pictures of monkeys. He also gave some examples like using it for tickets, degrees, and a lot more. Binance’s investment strategy is also quite different from that of FTX and many other platforms. While FTX has been investing in companies and lending platforms that went bankrupt, CZ is completely against it.
CZ said that they did take a look at many of these, but they do not have much intrinsic value. That’s because all they do is take user money and give it to others. So, what Binance wants is to see real products and their use cases. It looks like their approach to investment is a lot more stringent.
What are your thoughts as CZ hints that Binance is going to spend $1 billion by year-end on investments and building new projects? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.