Binance & FTX Display Why They Are The Top Dogs
The Number One Reason
In all my years of business, I have seen businesses and even business empires fall due to one common cause, greed! You can easily identify if you suffer from the same problem. Did you set aside cash/stablecoins during 2021 and early 2022? When prices began to drop did you rush to buy what you perceived to be bargains, or did you exercise patience? You can be sure that you would be in a tight spot right now if you owned a business and were exercising bad risk management. I wonder how many have actually sat down and structured their risk management and strategic approach to the Crypto Market. Simply buying something and hoping for it to go up is as close to gambling as you can find in the world of investments. Furthermore, exhausting all of one’s available funds is definitely the behavior of a gambler.
Business Owners With The Wrong Mindset
Likewise, in business, strict risk management needs to be adhered to. However, it seems as if most Crypto exchanges are only paying attention to one side of the coin. Splashing out on massive advertising campaigns and hiring sprees so deep into a bull market is rather foolish, to say the least. It can be equated to advertising an event that has already begun. Did Coinbase and others not factor in the harsh conditions of an upcoming bear market? Let’s be honest, Coinbase has been around and what we are currently witnessing is the result of unbridled zeal. Not only that but also very poor risk management from a company that really should know better.
Binance & FTX Walk A Different Path
Both CZ from Binance, as well as Sam Bankman-Fried of FTX, have publicly discussed how they chose not to give in to the pressure from VCs and others to overplay their financial hand. Both CZ and Sam chose to take the more conservative approach and ignore the external voices. After all, how can anyone outside of the company know what’s best for the business?
This is where CZ and Sam played it cool and simply focused on what they believed to be best. Once again hindsight has vindicated the actions of the wise. Steady organic growth is always the best and most trusted method. Unfortunately, not everyone has the patience and self-discipline to pull it off.
Continued Growth
Binance and FTX continue to grow where it counts because they focus on what really counts. I don’t think FTX has had any issues during these turbulent times. I know Binance experienced a brief issue with BTC withdrawals. I must admit, FTX really has a great platform, from a trader’s perspective. The UI is extremely user-friendly and the majority of withdrawal fees are wavered, apart from ETH and ERC20 withdrawals. It’s good to see even a few industry leaders playing the long game and protecting their companies. Unfortunately, we are likely to see a number of Crypto companies collapse before this bear market is over.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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