Former head of the world’s largest crypto exchange Binance, Changpeng Zhao (CZ), has warned about the risks associated with the widespread creation of corporate reserves based on the first cryptocurrency.
In response to a tweet by user BΞRIT, who listed Bitcoin treasuries created in May, former Binance CEO Changpeng Zhao (CZ) shared his perspective on the fundamentals of risk management. According to him:
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Every company takes on risk;
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Risk isn’t binary like 0 or 1 — it ranges from 0 to 100;
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With the right balance, it’s possible to achieve an optimal risk-reward ratio;
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Risk should and can be managed;
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Avoiding risk is a risk in itself.
In the comments, a user named Bene asked what Zhao himself has at stake. He replied:
“Too much. I have more fiat (stablecoins) than I’d like. Just received even more. Need to reduce risk on that side.”
Another X user, Vader.BNB, asked how to find the right balance in risk-taking to achieve maximum returns, noting that this involves a wide range of factors that need to be managed.
CZ responded:
“Think about extreme scenarios. Could you handle it if something familiar suddenly vanished? For example, if Bitcoin crashed to zero. Or if there were a revolution and your fiat currency became worthless.”
He added that such scenarios aren’t far-fetched and “happen more often in reality than we’d like.”
Earlier, Zhao predicted that Bitcoin could reach $1 million within the current market cycle.
