Zhao Changpeng, the CEO of Binance has made a bizarre allegation about the American business mogul, Warren Buffett. He has said that the successful investor doesn’t understand a thing about cryptocurrency and he’s making a considerable mistake ignoring the rise of Bitcoins and other cryptocurrencies.
The Hong Kong exchange executive was speaking to the Bloomberg TV on a range of topics, including the South Korea’s current situation, Binance’s unexpected growth, and customer demographics. But the interview gradually veered a talk on cryptocurrency’s general market trends where Haidi Lun, the interviewer, brought up the American’s comments.
Buffett Dismissing Bitcoins
Buffett is a famous Bitcoin naysayer, and he has even announced that his business would never have a position in cryptos. He has never shied away from bashing cryptocurrencies, also terming them a pyramid scheme and a time-bomb that may soon explode.
It is his comments that may not have gone well with Mr. Changpeng who said that though the investor could probably be proficient in stock investment and equity investment, he didn’t seem to know anything about cryptocurrency. But the successful investor’s stance stands in stark contrast to that of other financial giants, most notably JP Morgan’s chief Jamie Dimon who recently regretted his sentiments about terming Bitcoin a fraud in 2017.
Quite ironically, though, Zhao might be right saying Buffett knows nothing about crypto. The business mogul admitted to CNBC that he gets into trouble for things he knows, and that is why he’s not cowed by the idea of speaking about things he doesn’t know about.
“Why in the world should I take a long or short position in something I don’t know anything about?” He said.
Binance Curbing New User Account Creation
Zhao’s insistence that Buffett is wrong comes in the wake of Binance accruing so many users that it has been acting on the sudden surge of new user registrations. According to him, the exchange is currently adding “a couple of million” new clients each week, a factor that they never anticipated. The company has decided to limit further registrations so that it can cope with the technical demand.
Binance is barely six months old, yet, by volume, it is currently the largest cryptocurrency exchange. But according to an official communication from the Hong Kong-based exchange, the curb on new registrations is to improve infrastructure and enhance performance to its current users.
It had temporarily halted registrations altogether after receiving a massive 240,000 sign-ups in a single day. However, the exchange later comes up with this new directive, and as the CEO says, the growth was unanticipated and thus the curb in registrations per day.
It currently allows a limited number of new registrations per day. Primarily, new listings are done on unannounced times of the day and vary from day to day, although it is not the only exchange that chose to limit new registrations. Bittrex, CEX.IO, Bitfinex, decided to temporarily suspend the creation of new user accounts amid the feverish peak each of them was attaining.
Do you think what the bullish CEO has said about Warren Buffett is true? Will it rattle the most vocal naysayer and prompt him to hit back? Don’t hesitate to speak your mind in the comments below.