CZ also discussed his broader takeaways from the downward spiral of FTX on Twitter and shared “two big lessons.”
They include, “Never use a token you created as collateral” and “Don’t borrow if you run a crypto business.”
Instead of using capital “efficiently,” he urged crypto businesses to have a large reserve, pointing out that Binance has never used its BNB token for collateral and has never taken on debt.
In addition, Zhao said Binance “topped up” its Secure Asset Fund for Users, which is an emergency insurance fund, to the equivalent of $1 billion again after crypto prices plunged on news of the FTX deal.
