Innovation comes with high reward and risk said the CEO’s exchange.
Following SushiSwap’s dramatic drop, users blasted crypto exchange Binance for even listing the token in the first place. But Binance stands by its decision to back risky projects.
Binance CEO Changpeng Zhao, better known as CZ, defended their decision to list projects and tokens like SUSHI in a tweet.
“As one of the leaders of the space, we support innovation. With innovation comes the chance of high reward, and high risk. Some projects make it to the moon, while some fall short. Always manage your risk accordingly. In crypto winter, I tell people to HODL. When things are hot, I tell people to be super cautious. I still get heat whenever something go south. I will take the heat. It just hurt to see people getting rekt, and still not managing their risks.”
SUSHI fell from $9.5 to $1.13 in just five days after its project head, the anonymous developer Chef Nomi, dumped a stash of SUSHI from the dev fund. Chef Nomi has handed over control of the protocol to FTX CEO Sam Bankman- Fried.
Decentralized finance watchers were not happy with Chef Nomi’s actions, and some who bought SUSHI blamed exchanges like Binance that listed the token in the first place.
Binance has long been a supporter of DeFi projects, listing many projects in the past year. Zhao has said he believes DeFi is the future though more education and experimentation may need to happen before it becomes mainstream.