Key facts:
According to Changpeng Zhao, “It is important for entrepreneurs to issue their own cryptocurrency.”
Several examples show that investing in these currencies, many times, is not a good deal.
There are currently more than 8,000 cryptocurrencies and tokens. For Changpeng Zhao, CEO of the Binance exchange, that number is not enough and he considers that there should be millions.
This was stated by the businessman (better known by his initials “CZ”) in a publication on the company’s official blog bearing a Tolkien-inspired title: “One coin to rule them all or millions of coins?”
CZ himself answers the question at the top of his text: «I think people will continue to create new tokens for their projects. And there will be millions of tokens. Like startups, most will fail. But those who are successful will be very successful and will create a lot of value for the world. “
Chagpeng Zhao not only imagines that this will happen, but he wishes it to be so. For him “it is important that entrepreneurs issue their own currency” and he ensures that he is in charge of explaining them to them when he speaks with executives of other companies. “Once I explain it to them, they usually have a completely new perspective on cryptocurrencies and why it is important to their future economy.”
3 benefits for companies that issue their own cryptocurrencies
The 44-year-old Chinese-Canadian businessman argues that there are three benefits to a company creating its own token or cryptocurrency.
The first of these is the possibility of raise money at launch. Through initial coin offerings (ICOs), coin issuers manage to receive large sums. In return, they give low-priced coins to early investors.
As a second benefit, CZ mentions the coins the team is holding. These are sometimes sold later if the price of the crypto asset increases. Thus, the issuing company obtains economic benefits.
Finally, the CEO of Binance describes that,…
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