In reaction to the frequent occurrences of crypto platforms suspending users’ accounts and prohibiting them from accessing their assets, Changpeng Zhao, CEO of Binance, has given advice to the crypto community.
CEO Zhao tweeted on July 21: “Choose exchangers carefully. Avoid exchanges that need money to run.” This was a response to the news that the Singapore-based crypto exchange Zipmex had suspended taking withdrawals of virtual money “until further notice.”
A Twitter user asked “What assurance do you have that your exchange won’t go nowhere?” to which CZ replied “Nothing is risk-free. At least our company is successful and sustainable. In addition, Binance is the biggest cryptocurrency exchange, with a 24-hour trading volume of about $20 billion.”
Regarding Zipmex, the marketplace has just joined the ranks of bitcoin businesses that are struggling to survive. In a press release on July 20, 2022, the exchange attributed the shift to “a mix of variables beyond” their control and identified volatile market conditions as the root cause.