Before the serious effects of FTX, the CEO of Binance gave 6 principles that Binance and centralized exchanges should adopt to ensure trust with users.
CZ emphasized in his article, the most important role of exchanges at the moment must be to protect users. User funds cannot be used for illegal purposes and must be kept safe.
6 principles of CZ include:
- Be risk averse with user funds
- Never use native tokens as collateral
- Share live proof of assets
- Keep strong reserves
- Avoid excessive leverage
- Strengthen & Enforce Security Protocols
It can be seen that the principles that CZ gave are the mistakes that FTX made that led to the collapse of an empire in the market. Many companies have filed for bankruptcy because of the impact. At the same time, after FTX, there have been many exchanges involved in scandals about using users’ funds in an untransparent manner.
CZ’s principles is timely and contributes to affirming the current market leadership position of Binance and CEO Changpeng Zhao.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
May
Coincu News
Author
News
6 Principles Of CZ For Centralized Exchanges
Before the serious effects of FTX, the CEO of Binance gave 6 principles that Binance and centralized exchanges should adopt to ensure trust with users.
CZ emphasized in his article, the most important role of exchanges at the moment must be to protect users. User funds cannot be used for illegal purposes and must be kept safe.
6 principles of CZ include:
- Be risk averse with user funds
- Never use native tokens as collateral
- Share live proof of assets
- Keep strong reserves
- Avoid excessive leverage
- Strengthen & Enforce Security Protocols
It can be seen that the principles that CZ gave are the mistakes that FTX made that led to the collapse of an empire in the market. Many companies have filed for bankruptcy because of the impact. At the same time, after FTX, there have been many exchanges involved in scandals about using users’ funds in an untransparent manner.
CZ’s principles is timely and contributes to affirming the current market leadership position of Binance and CEO Changpeng Zhao.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
May
Coincu News
Other Posts
Related Posts
Press Releases
After Raising $5 Million, Sealana Announces Presale Ends in 5 Days – Last Chance to Buy
News
Ethereum Gas Prices Reach Historic Low Under 3 Gwei Following Dencun Upgrade
Press Releases
PlayDoge ($PLAY) Achieves $5 Million Milestone in ICO, a Tamagotchi-Style Meme Coin
News
Ripple’s XRP Sale Worth $78 Million Is Putting Great Pressure on Token Prices
News
Bitcoin Whale Wallets With Over 1,000 BTC Are Almost At A New All Time High
Latest
Buying Opportunity Amid Bitcoin Dip: Promising Run-to-Earn Token 99BTC
Binance Account Misuse Is Now Being Closely Monitored By The Exchange
Press Release
Buying Opportunity Amid Bitcoin Dip: Promising Run-to-Earn Token 99BTC
New Altcoin Mpeppe Creates Waves With Pepecoin Whale Investors Backing Growth
