Binance will invest $1B in the crypto sector despite bearish sentiment

Changpeng Zhao confirmed that Binance could invest significant funds in the crypto sector despite the huge downturn in the industry.

Binance is a popular crypto exchange because of its secured pro-level crypto offerings. The exchange has hand in many high-potential crypto & non-crypto projects. The exchange was founded by Changpeng Zhao and he is also the CEO of this exchange.

On 7 October, Changpeng Zhao appeared in an interview with Bloomberg. In the interview, Zhao said that Binance may allocate a significant amount of cash in this sector this year. 

Binance has already made a $327 million investment in 67 projects (related to crypto & non-crypto finance). Now Binance could spend over $1 billion on investment deals by the end of the year.

On the questions of crypto lending companies’ acquisition plan, Binance CEO said that they don’t find any actual intrinsic value behind crypto lending platforms because they don’t work on a practical level, instead, they hand over users’ funds to other companies for yield rewards.

“Many of them, just take a user’s money and give it to somebody else. There’s not a lot of intrinsic value. In that case, what’s to acquire? We want to see real products that people use.” Zhao said.

Further Zhao directed attention toward the future downturn possibilities and claimed that the situation may become worse but there are equal opportunities for us.

“there’s a lot of risks and a lot of pain, but also a lot of opportunity.” Binance CEO added.

Hack Attack on BNB Cross-Chain Protocol

On 7 October, A cross-chain protocol between BNB Bep2 & BNB Bep20 was exploited because of a vulnerability. That hack attack resulted in a total of $100 million loss.

To stop more impact, the team froze the BSC network activities through request to validators.

On the same day, the network was resumed. Now the BNBchain team will decide via a governance method whether to freeze funds in the network or not. 

Read also: Ripple will build a Carbon neutral market in partnership with Thallo