Despite the long-lasting crypto winter, blockchain developments continue to make headlines almost daily.
Similarly, Binance, the world’s largest crypto exchange by trading volume, has spent a considerable fortune on investments and acquisitions and continues to invest money even in worse market situations. Chengpeng Zhao (CZ), the founder of the crypto exchange, has revealed that there is still a lot to build and the company’s spending is expected to reach 1 billion by the end of this year.
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Without providing specific figures, CZ revealed during the announcement that the company had posted a profit during this down period. He also noted that cryptocurrency prices have fallen by more than 50% compared to last year’s bull market.
In 2022, Binance invested $325 million in 67 projects. In particular, developments supported by the company have grown significantly this year, neglecting the downward trends in cryptocurrency prices. The crypto exchange invested $140 million in 73 projects last year alone. Still, Binance remains to build a large chunk of dry dust, which could push the number higher.
Additionally, the crypto exchange’s investment that is expected to be committed in 2023 is a $500 million deal for the sport of Twitter Inc’s purchase. of Elon Musk that is back on the table and the funding of 200 billion dollars in the Forbes media company. CZ noted that Binance may also be interested in acquiring minority stakes in traditional e-commerce and gaming companies in the coming months.
Binance CEO prefers to invest in DeFi, NFT
Unlike its competitor Sam-Bakman Fried of the FTX exchange, which preferred to support struggling crypto projects, CZ shows interest in investing in NFT and DeFi projects among payment transfer services.
The CEO of CZ noted;
DeFi Works NFTs are much more than selling images of monkeys. NFT use cases have not been largely built well: NFT for banknotes, for university degrees. I think the technology will stay.
Rival crypto exchange FTX made huge deals for bailouts and loans with crypto companies like Voyager, which eventually filed for bankruptcy. And as of now, FTX has acquired its assets in an auction for 1 billion.
Binance CEO commented;
We looked at a lot of lenders in the past few months, because that’s where all the problems are,” Zhao said in an interview this week. “Many of them, they just take a user’s money and give it to someone else. No there’s a lot of intrinsic value. In this case, what to acquire? We want to see real products that people use.
Additionally, Binance Exchange employs a team of over 30 people focused on acquisition and mergers. Also, it currently has a fund of $7 billion to invest.
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It is also worth noting that when other crypto companies reduce their workforce due to depreciation, Binance continues to hire more experts worldwide. Therefore, the CEO explained in May that the company maintained a healthy war chest by controlling excessive spending in the bull market.
Featured image from Pixabay and chart from TradingView.com
