Earlier today CZ, the Binance CEO published a blog post about the current market downturn and the number of failing crypto projects. I found the post very interesting, as it echoed a similar sentiment in my previous post about crypto winters.
The three Poorly versions and the two other
In the post, he clarifies that he is not opposed to bailouts. he is just opposed to bailing out what he labeled as poorly projects. He then goes on to explain his views on this. The bailouts he is opposing are once being done to a project that falls in one of the three categories of poorly. And they are:
Poorly designed (no product-market fit)
He goes on to say that he simply thinks bad projects should not be saved. Let them fail, and new better projects will instead take their place.
Bailouts here don't make sense. Don’t perpetuate bad companies. Let them fail. Let other better projects take their place, and they will. -CZ
He then goes on and talks about two other types of categories. There are projects he thinks have potential and would be worth saving. The second category is projected that find themselves on the ropes due to some mistake they have made. So it is not projected that fall under the 3 Ps. These types of projects can be bailed out and made to operate successfully with some small changes.
The third type of project is a project that will survive on its own, but they are strapped for cash. They will survive but a case infusion would greatly benefit them. He then notes that Binance has over the last couple of weeks engaged in talks with a lot of projects. And I thought it pretty funny reading he said that all of them think they fall into this third category.
I found it interesting to basically read a boost by CZ the CEO of Binance who virtually said the same thing as I did in my post where I talked about how I found that Bear Markets and Crypto Winters are a good catalyst for culling these worthless projects. While he used different words than I, his sentiment of "Don’t perpetuate bad companies. Let them fail." is basically echoing my sentiment exactly. If you would like to read my take on it you will find it here:
Do you think CZ is correct in his sentiment, to let the bad projects just die? Or do you think we should try and save all crypto projects no matter what project it is? Please share your thoughts on this in the comment section down below.
I have also just started a new series of weekly posts, that will go live every Friday. You can catch the sixth step here:
See you on the interwebs!
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