Following FTX’s assistance to insolvent crypto lenders BlockFi and Voyager, there have been suggestions that Binance may declare some bailouts as well.

Binance finally broke the silence and addressed the situation.

The firm stated that it is not in the mindset to help “poor” or failed cryptocurrency initiatives, which also include “misregarded”, “mismanaged” or “misorganized” companies. Binance stated in its most recent article that bailouts for such companies are unnecessary and should not be safeguarded.

The publication claims not to keep terrible companies running. However, they should allow better companies to prove themselves, which they will. During the current market downturn, crypto lending companies were in demand to sell due to huge debt.

However, Binance highlights certain types of companies that we should keep out. According to them, these projects are the ones that make minor mistakes.

Explaining their points, Binance claims that they are now spending too much, have inadequate savings, or have other small fixable issues. In addition, the firm believes that these types of projects usually have some positive characteristics. These are product fit to market, revenue generation in standard market situations, strong business frameworks, competent teams, etc.

The SEC commissioner is not in favor of the rescue

Shortly after FTX’s announcement of a $250 million liquidity transfer to bail out BlockFi, the crypto-friendly SEC commissioner weighed in. According to her, the latest market crisis is a normal way of separating the powerful from the poor. Allow things to develop gradually.

Peirce stated in an interview with Forbes that there is no bailout option in crypto. […] He doesn’t like to claim that they will try to find a method to rescue them if they don’t have enough right to do so.

However, if it happens, she says she won’t want to use that power. This is because, according to the commissioner, it is necessary to let these things develop on their own. Hester Peirce, a cryptocurrency enthusiast, also claimed that the crash could be a useful life lesson for authorities and industry players.

Was this writing helpful?



This post Binance will not support failed and underperforming cryptos

was published first on https://coinpedia.org/news/not-in-a-state-to-support-failed-poor-performing-cryptos-claims-binance%EF%BF%BC/

Author

Write A Comment