Former CEO of Binance Changpeng Zhao (CZ) admitted that despite several attempts, he still did not fully understand the strategic financing of STRC. Also, when talking about Michael Saylor’s increasingly Bitcoin-backed financial method, CZ explained that the product is very technical and can be very difficult for many investors.
“I tried several times to try to understand STRC. I don’t think I understand it well,” CZ said. He admitted that he is not qualified to give details of how the drug works.
According to CZ, many of today’s high-tech products have become “too complex” and “over-engineered.” They often rely on multiple levels of funding and funding. He added: “When these kinds of things become more complex, they become more difficult to understand. As a result, in his view, increased complexity makes it harder for experienced investors to properly assess the causes of risk.”
“Michael Saylor Understands Better Than Me”
Despite his concerns, CZ insisted his comments were not targeted Michael Saylor personally. “Michael Saylor is obviously very smart,” he said. In addition, he added that Saylor has extensive expertise in public companies, capital markets, senior notes, and fixed income.
CZ explained that its portfolio was based on technology and business rather than financial technology. For this reason, things like STRC are difficult to analyze. He also revealed that Saylor spent about 15 minutes briefing STRC before speaking together at the event.
“If I Don’t Understand, It Worries Me”
While acknowledging its limited capabilities, CZ questioned whether the deal would be too difficult for many investors. “If I don’t understand it … it worries me that maybe there are other guys who don’t understand it,” he said. For CZ, the crisis itself represents a financial risk. This is because it reduces transparency and makes informed decision-making difficult.
“Market Overwhelmed When Option Sold 32 Bitcoin”
While unable to comment on the STRC structure, CZ defended the Strategy after being criticized for its 32 BTC sale. He said that the company has about one million Bitcoins. This makes the work less difficult. “At some point, they have to sell Bitcoin,” CZ said. He also said that companies should meet financial requirements such as payment and regulation of their banks. Also, he said that the market often overreacted, portraying Saylor as a hero or villain rather than a proper perspective.
“Bitcoin May Not Be the Best Investment Asset”
CZ also questioned whether Bitcoin’s volatility makes it a good financial asset to use. While he remains bullish on Bitcoin’s long-term prospects, he noted that the stock has experienced swings of 50% to 80%. This increases the risks associated with the infrastructure that is used the most.
He insisted that his opinion was based on his limited understanding of STRC. However, he said he remains wary of financial issues that are difficult to explain or understand.
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