Elon Musk selling or buying Bitcoin doesn’t mean much, says Changpeng Zhao

Hottest New Crypto Listing On Major Exchanges
Hottest New Crypto Listing On Major Exchanges

Elon Musk selling or buying Bitcoin doesn’t mean much, says Changpeng Zhao

By Hassan Maishera - min read

Tesla has sold 75% of its Bitcoin holdings, and Binance’s CEO believes it doesn’t mean much to the broader ecosystem.

Changpeng Zhao (CZ), the CEO of the world’s leading cryptocurrency exchange Binance, believes that Elon Musk buying or selling Bitcoin doesn’t mean much. He said this when asked about Tesla’s recent sale of 75% of its Bitcoin holdings.

CZ pointed out that Elon Musk’s decision to buy or sell Bitcoin doesn’t matter as it doesn’t affect the fundamentals of the leading cryptocurrency. 

Elon Musk gave reasons behind the dump a few days ago, revealing that the electric vehicle manufacturer needed funds for the freshly opened factories in the US and Germany. 

Furthermore, Tesla needed a better cash flow to support its businesses in China, which were massively affected by the extended Covid lockdown in the second quarter of the year. 

The Binance CEO, who pledged $500 million to support Elon Musk’s ambition to acquire Twitter, added that no one knows why Musk sold most of the company’s Bitcoin holdings, adding that the Tesla boss may need cash to acquire Twitter. 

FTX’s Sam Bankman-Fried has been heavily involved in firms such as Voyager Digital and BlockFi. However, CZ said that Binance has minimum exposure to collapsed lending firms like Voyager and Celsius. 

Changpeng Zhao said Binance didn’t act as their creditor or debtor. When asked if Binance had noticed the risks attached to these firms a while ago, CZ replied that;

“I think because we are dumb. We like to do things in a simple way… We are an exchange, and that’s why we are not in the loan business.”

The leading cryptocurrency is down by more than 60% from the all-time high of $69,000 it recorded in November 2021. Despite the decline in prices, CZ maintained that he doesn’t sell Bitcoin. He concluded that;

“For me, I don’t have dollars. Everything I have is in cryptos. So when I need to spend money, I need to spend some parts of it somewhere. For me, I’m all in cryptos. I don’t have to think about selling crypto. Crypto is my money.”

At press time, Bitcoin is trading above $22k per coin.