41% of Surveyed Crypto Investors are Newbies
41% of Surveyed Crypto Investors are Newbies 101
Source: AdobeStock/Pormezz

As many as 41.4% of cryptocurrency investors are crypto newbies, and 60% of them declare they have invested between USD 2,500 and USD 5,000 in crypto, according to the results of a recent survey by alternative investment firm Invictus Capital.

“Today’s investor resembles a 35-year-old German engineer named Günther. He derives his crypto investing information from YouTube, because he values learning how to generate high returns on his investment more than the idealism of cutting out the middleman,” the company said in the survey’s summary.

They are referring to the finding that the country with the highest percentage of surveyed alternative investors was Germany, at 14.1%, followed by the US and Spain, with 7.7% and 6.8%, respectively. The UK and Turkey were ranked fourth, both at 4.8%.

Furthermore, the survey indicates crypto investing is dominated by those aged 31-45, with 41.8%, while respondents aged 25 and below represent 25.1% of the total. Investors aged 25 to 30 hold a 22.9% share, while those aged 45 and above represent only 10.2% of the total.

The survey collected answers from some 3,473 respondents spread across a total of 60 countries. Ofir Sever, a PR spokesperson for Invictus Capital, told Cryptonews.com that the survey’s focus was to determine the modern investor profile, media consumption habits, crypto investing sources, as well as investing habits. The survey was carried out online last February and March, and it targeted investors.

Data was sourced from respondents with access to high-speed Internet, with a significant share of responses from the European Union’s member states and Asian countries, according to the spokesperson. Mobile users provided 94% of the responses, with desktop and tablet users generating a further 5.5% and 0.5%, respectively.

The average sum invested in crypto is reported to be USD 2,500 – USD 5,000, with 60% of those surveyed marking this option. 40% also reported investing USD 100 – USD 2,500, while more than 30% of the respondents have also made investments under USD 100.

With regards to the respondents’ professional profiles, engineers lead the way, at 12.5%, followed by tradesmen and lawyers, both at 9.6%, and finance professionals with 8.6%. Among the listed professions, IT is at the bottom of the list, with 1.6%.

The survey’s summary further stated that:

  • 68% said high returns remain a motivation;
  • 54% see crypto investing as a method to future proof their money;
  • 25% invest to mitigate dealing with middle men;
  • 50% noted high fees on exchanges, quality, and volume on exchanges as the biggest challenges they faced.

And speaking of exchanges, 69% of surveyed investors listed Binance as their exchange of choice, followed by Coinbase with 42.6%, and Kraken with 13%.

74% of the surveyed individuals chose YouTube as their preferred social channel.

Meanwhile, almost 40% percent of respondents said that they invest on a weekly basis, 34.3% said they invest monthly, and 7.7% said they invest once a year, Invictus Capital concluded.

____

Learn more:

9% of Surveyed US Teens Claim to Have Traded in Crypto

50% of Inexperienced Investors to Hold Bitcoin Less Than a Year – Survey

18% of Asked Americans Bought Crypto, Most Know Only Bitcoin – Survey

Young Investors Drive Increased Aussie Bitcoin & Crypto Investments

Investors Still Prefer Stocks To Bitcoin, But BTC Wins Over Gold – Survey

More Professionals Trust Crypto Than Want To Get Paid In It – Survey

Crypto is Here to Stay, But There is a Twist, Survey Shows

The incoming SEC chairman Gary Gensler clearly stated that both Ethereum and XRP were non-compliant securities

In a recent seminar with Court Judge Sarah Netburn, Dugan Bliss, a senior adjudicator at the US Securities and Exchange Commission, argued that the agency has not yet made a formal position on the regulatory status of Bitcoin and Ethereum. Bitcoin looks more certain, however, the status of ETH is being disputed as is the case with XRP.

Ethereum could still be classified as a security

Bliss stated:

“So I want to make clear that this is my understanding of the current situation and I don’t want to be overly technical, but the SEC, itself, my understanding, it has not taken an official position. There is no action that it took to say Bitcoin is not a security, Ether is not a security.”

While former SEC chairman Jay Clayton has repeatedly stated that Bitcoin is not a security, there is less regulatory certainty over Ethereum.

Bill Hinman, former head of the SEC’s Corporate Finance Division, issued a statement of approval on the sale of Ether and non-securities offers just months before the end of his term in 2018.

Bliss stated that Hinman’s speech does not necessarily reflect the regulator’s stance on Ethereum:

“Now, there was a speech by a high-ranking person who said that to him that’s what it looked like but there has been no action letter, no enforcement action, none of the official ways in which the SEC takes a position on that matter that has occurred.”

However, the upcoming SEC chairman Gary Gensler has made it clear that both Ether and XRP are non-compliant securities in an interview with the New York Times:

“There is a strong case for both of them — but particularly Ripple — that they are non-compliant securities.”

Notably, Gensler confirmed that he sees Bitcoin as a commodity during his recent congressional hearing:

“So I think at the SEC it’s really to the extent somebody is offering an investment contract and security that’s under the SEC’s remit and exchanges that operate there. […] If not, it’s a commodity as Bitcoin has been deemed.”

Unlike Bitcoin, Ethereum pre-mined a significant portion of the money prior to holding the initial coin offering (ICO).

Weekly Roundup: Crypto Market Cap Hits $2T, ICE3X Ceases Operations

Jack Dorsey’s NFT tweet will help the poor in East Africa through an upcoming bitcoin donation. To learn more about this developing story and other news, keep reading.

Jack Dorsey’s NFT Tweet to Help the Poor in East Africa

As the non-fungible token (NFT) craze continues, Jack Dorsey is auctioning his first tweet on Twitter as an NFT. Dorsey posted this tweet on May 6, 2006. The auction is taking place on Valuables and will end on March 21, 2021.

Jack Dorsey NFT Tweet

Dorsey has tweeted he will convert the proceeds of this auction to bitcoin and donate them to GiveDirectly. This is a non-profit organization that seeks to end extreme poverty in East Africa. Donations sent to GiveDirectly benefit people in Kenya, Rwanda, and Uganda.

Currently, the highest bidder of this NFT tweet was a Twitter user with the handle @sinaEstavi. He outbid Tron CEO Justin Sun, who had bid $1 million. Estavi bid $2.5 million.

Valuables wrote: “The tweet itself will continue to live on Twitter. What you are purchasing is a digital certificate of the tweet, unique because it has been signed and verified by the creator. Owning any digital content can be a financial investment, hold sentimental value, and create a relationship between collector and creator. Like an autograph on a baseball card, the NFT itself is the creator’s autograph on the content, making it scarce, unique, and valuable.”

Uncertain Regulatory Environment Pushes Crypto Firms Out of South Africa

The uncertain regulatory environment is pushing crypto firms out of South Africa. According to an article on Business Tech, the MTI scam gave regulators in South Africa a jolt and some firms will not wait to see how the matter pans out from a regulatory standpoint.

These crypto firms are planning on moving to Singapore and the UK. That is because Singapore is redrawing legislation to attract crypto firms while the UK is getting requests to embrace cryptocurrencies.

Revix, a crypto investment platform that allows customers to invest in a bundle of cryptocurrencies, is moving its headquarters from Cape Town to the UK. The company is also considering setting up in Germany to scale its operations.

Luno is another crypto company with headquarters in the UK despite being owned by South Africans. The exchange also operates in Singapore.

South African regulators “have been incredibly slow in terms of regulation in the industry and that leads to businesses looking internationally. In an unregulated environment, a customer arrives at our platform with skepticism, and rightfully so,” said Revix CEO Sean Sanders in an interview.

According to Sanders, the uncertainty regarding potential regulation is also making it difficult for crypto firms to market their services on social media platforms thereby limiting growth.

Binance CEO CZ Among the Top Blockchain Billionaires in 2021

Binance CEO, Changpeng Zhao (CZ), is among the top blockchain billionaires in 2021 according to the latest Hurun global list. CZ and 16 other billionaires have cumulative wealth of US$ 77 billion. These billionaires have generated their wealth from running crypto exchanges, investing in cryptocurrencies, and mining crypto.

After facing a price correction in 2018, crypto billionaires are enjoying a boost in their wealth thanks to the recent bull run.

The top five billionaires are Brian Armstrong of Coinbase, Sam Bankman-Fried of FTX, Changpeng Zhao, Chris Larsen, and Jed McCaleb of Ripple. Their net worth is $11.5 billion, $10 billion, $8 billion, $5.1 billion, and $3.2 billion, in that order.

To learn more about Bitcoin, download the Bitcoin Beginner’s Handbook for free.

Bitcoin Beginner's Handbook

CEX.IO Launches Crypto Savings Account Service With up to 20% APY

CEX.IO, a leading international cryptocurrency exchange, launches its Savings service as the newest solution in the fast-growing Earn ecosystem. Available in 171 countries, CEX.IO Savings offers users up to 20% Annual Percentage Yield (APY) on 19 different digital assets with the flexibility to move funds in and out of their accounts without any restrictions.

Similarly to savings accounts in the traditional finance industry, CEX.IO Savings offers users a way to generate a passive return on the digital assets they hold. However, unlike a savings account, the international exchange’s Savings product allows customers to add capital or withdraw their funds at any time without fees, expiration dates, or the requirement to lock their holdings for extended periods.

Currently, CEX.IO Savings users can earn interest between 2% and 20% APY on 19 different cryptocurrencies, including multiple stablecoins and DeFi tokens. However, the company is soon expanding its list of supported digital assets.

Users can earn interest in their cryptocurrencies in two ways within CEX.IO Savings. While Flexible Savings provides customers access to their funds any time they need, Locked Savings is for those who are planning to hold their digital assets for a longer time period. While users have to lock their assets until the expiration date, they can utilize this savings type to achieve higher returns with fixed interest rates. On the other hand, the APY for Flexible Savings is fixed on a daily basis. It is reviewed every 24 hours and will respond to the market conditions based on supply and demand.

CEX.IO launched its Savings service as part of the greater Earn ecosystem, which is centered around crypto users seeking to generate an extra income on their digital asset holdings. As the first solution in the Earn suite, CEX.IO launched Staking in 2020, a service that allows customers to earn rewards for locking up their tokens and maintaining the blockchain networks of cryptocurrency projects utilizing the Proof-of-Stake (PoS) consensus mechanism. One of the USPs of CEX.IO Staking is that CEX.IO takes on all the complexities of staking node management and technical integrations.

This allows CEX.IO Staking to guarantee fast capital withdrawals for our users to the extent that users can even place limit orders on our exchange with the assets they staked. This unique feature allows our users to keep generating a passive return on their staked asset while waiting for the price to increase up to the level when they would like to exit from their position.

Founded in 2013, CEX.IO is an international cryptocurrency exchange that offers a wide range of digital asset solutions to over 4 million customers. With a fast-growing ecosystem of innovative products, the London-based company serves all participants of the cryptocurrency market – from retail traders to institutional investors. With a robust, enterprise-grade service, CEX.IO’s multi-functional digital asset solutions feature cutting-edge security while being regulated in multiple jurisdictions, including the United States, Gibraltar, and Cyprus.

In July 2020 and February 2021, CryptoCompare ranked CEX.IO among the top 10 cryptocurrency exchanges worldwide in its Exchange Benchmark Rating. In both reports, the London-based company secured an A grade as well as the third spot in terms of security.

“The way the crypto market was developing in 2020 and 2021 provided digital asset holders a good deal of new options to earn. Staking, lending, and yield farming – to name a few. During the times we have spent in the DeFi sector, we noticed a demand among our users to earn passive income while holding crypto assets. For that reason, we decided to launch CEX.IO Earn, a new service within CEX.IO ecosystem allowing crypto owners to profit by contributing to the blockchain industry. After rolling out Staking and seeing the hugely positive market response, we are now launching Savings. With our new product, customers can earn interest after the coins they contributed on the platform while having the flexibility to withdraw their funds or increase their holdings to achieve better returns at any time,” Konstantin Anissimov, Executive Director at CEX.IO, stated.

Spain Seeks Public Comments on Potential Cryptocurrency Regulations

Cryptocurrency regulations across different countries continue to be a hot topic, and Spain is the latest to join in. The nation’s watchdog has asked industry participants, investors, and consumers for their opinion, and they have until April 16th to respond.

Spain’s Regulator Looks for Crypto Legislation

According to a report from La Informacion, The National Securities Market Commission (CNMV), Spain’s watchdog overseeing the securities markets, has initiated the first steps of nationwide crypto regulations.

The process has started by sending emails to representatives of the cryptocurrency industry, investors, and customers. They have less than two weeks to prepare statements with their comments on the proposals and send them back to the agency.

The coverage outlined that the potential regulations could affect almost all areas of the cryptocurrency industry. However, the legislation could exempt some professional activities, assets that are exclusively used as means of payment, and non-fungible tokens (NFTs).

Interestingly, the US also hinted at new rules regarding NFTs recently, but they seemed significantly more strict. The Internal Revenue Service (IRS) may implement taxes on NFT purchases made with profits of digital assets, as CryptoPotatoreported recently.

Apart from the aforementioned potential regulations on crypto assets, Spain has also explored developing a central bank digital currency. The country’s central bank said in late 2020 that releasing a CBDC is among the priorities in the next three years.

Regulations in Other Countries

The exponential growth of the entire crypto space in the past year or so has caught the attention of global regulators. Consequently, numerous countries have started looking into inserting legislative frameworks.

Spain’s northern neighbor, France, called for a new and robust approach towards crypto regulations in February this year. The chairman of the nation’s financial regulatory body (AMF) believes that the current legal structures are insufficient when it comes down to new asset classes such as digital currencies.

Continuing north on the map and Britain’s Finance Minister, John Glen, urged the country to firstly focus on regulating stablecoins rather than the entire market, while the FCA has repeatedly issued warnings.

In some countries, such as South Korea, the implemented regulations have caused troubles for some of the firms operating within their borders. The East Asian nation introduced new AML legislation last month, and several cryptocurrency exchanges announced closing doors for their respective South Korean branches in response.

Is Regulation the Silver Bullet for Financial Malpractice? / What is Financial Regulation and Does it Matter to DeFi?

The text below is an advertorial article that was not written by Cryptonews.com journalists.

cryptonews

In traditional finance, financial regulation is intended to provide protection, safety and stability for institutions and consumers alike. Organisations such as the Securities and Exchange Commission (SEC) in the US and the Financial Conduct Authority (FCA) in the UK are tasked with policing the conduct of banks, asset managers and other financial organizations to ensure that strict rules are followed and punishments applied when those rules are broken.

DeFi and cryptocurrency more widely has fallen outside the remit of regulation since Bitcoin was first launched in 2009. For more than a decade digital asset holders and service providers have largely been able to go about their business unfettered by the same rules and regulations that fall on the shoulders of JP Morgan Chase, for example; not least because the rules that are set for traditional financial institutions are extremely difficult to apply to digital assets.

Regulation across TradFi, CeFi and DeFi

As anyone who has ever applied for a credit card, bank loan or mortgage will know, the long-arm of financial regulation places a significant emphasis on data collection and suitability assessment. This requires collecting and storing vaults of customer information, running complex individual credit risk checks and ensuring detailed custody, anti-money laundering and transaction regulations are followed – and while this is achievable for JP Morgan, it is less so for many cryptocurrency organizations.

In the world of CeFi, or centralized finance, we are seeing moves in this direction, with Coinbase – one of the largest CeFi exchanges – in regular discussions with the SEC as it seeks to list on the US stock market. However, in the world of DeFi, regulation is anathema to much of what the ecosystem stands for. Built largely on a decentralized, permissionless system of autonomous smart contracts, many protocols do not have the central management required to carry out regulation. Moreover, many DeFi applications don’t ask users for their information (or “KYC”), which is a key attraction for many DeFi users.

Regulation and the regulated

Governments and public-sector bodies often cite seven specific areas as being major goals of financial regulation: investor protection, consumer protection, financial stability, market efficiency, competition, the prevention of financial crime, and fairness. For end users, investor and consumer protection are the most important and refer to the way in which financial organizations should market investment products and communicate with their customers. Rules in these areas generally call for transparency (especially around potential risks of products and investments) and clear, open communication with customers.

This is, few would dispute, a highly laudable facet of regulation that should protect vulnerable customers. In practice, however, it frequently doesn’t. Aside from the sort of systemic failings the world witnessed in 2008/09, leading to USD 321 billion in fines dished out to major banks such as Barclays for LIBOR rigging, regulation often fails to keep out bad actors. In the UK, the “mini-bond” space has been a hotbed for fraud, with more than 11,000 people losing GBP 236 million in 2019 to a company claiming to offer property-backed savings accounts. These savers – largely inexperienced older people – suffered heavy losses and the scandal led to a widespread overhaul of a space with hundreds of similar cases.

Best practice should span all sectors

Despite its failings, however, regulation is important: many schemes such as the UK’s Financial Compensation Scheme (a fund paid for by banks that will reimburse savers in the event a regulated institution collapses) provide genuine protection for consumers, as do imperatives for clear, transparent disclosure about products and services and treating customers fairly. Most importantly, however, the onorousnes of regulation can also help to keep out some of the worst actors who may not have the conviction or capacity to comply with regulation.

As such, YIELD App seeks to emulate the key tenets of prudential regulation across its entire platform and customer service proposition. We provide clear and consistent public information including a product disclosure statement that details our structure, practices and principles and clearly states the risks associated with digital assets. On our site we also host a comprehensive set of FAQ’s along with a 24-hour customer helpdesk to ensure we can answer any customer queries quickly and accurately. YIELD App also seeks to mirror important system-level financial regulation, including well capitalized treasuries and the prevention of financial crime through level 1 KYC. We have also partnered with Merkle Sciences for chain analysis to ensure we comply with the FATF red flag rules and to adhere to our internal KYC/AML policies.

While DeFi is operating independently today, as one of the fastest growing areas in cryptocurrency DeFi is likely to fall under the scrutiny of regulators in the future: indeed, ita seems impossible that a market of 40 Billion USD that is expanding by the multi-millions every day would not. Therefore, it is essential that any organization truly serious about its long-term future as a DeFi service provider operates under the best practices already established in traditional finance. As highlighted above, regulation itself is no guarantee: it is only as strong as those that implement and comply with it, and you don’t have to be regulated to do so.

Signal Turns Into Noise With MobileCoin Integration
Signal Turns Into Noise With MobileCoin Integration 101
Source: Adobe/natanaelginting

Private messaging app Signal, which is also popular among crypto users, announced they’re launching payments using MobileCoin (MOB). But then things turned sour.

Per the April 6 announcement, this is a beta feature in Signal Beta, available to the United Kingdom folks for testing and feedback purposes. They plan to expand the beta following more feedback.

Privacy-focused payments network MobileCoin, which uses the Stellar (XLM) Consensus Protocol (SCP) to synchronize a ledger, is the first payments protocol for which Signal added support, enabling a MobileCoin wallet to be linked to the messaging app in order to send/receive funds, monitor balance, and review transaction history. It’s currently possible to convert to/from the MOB token on crypto derivatives exchange FTX, with other exchanges coming soon, they added.

Signal does not have access to a user’s balance, full transaction history, or funds, they claimed, while users can transfer their funds “at any time” if they want to change services. Per Business of Apps data, Signal had 40m users in January this year.

But the reaction to this rollout wasn’t entirely positive. Some claimed that Signal is “dabbling in shitcoin pump,” and others added that Signal “has alienated all Bitcoiners” with this move.

just setting up my twttr

— jack (@jack)

Other criticism includes comments that Signal creator Moxie Marlinspike is using Signal to pump his MOB bag. Marlinspike has also been a technical adviser for MobileCoin.

However, he told WIRED that neither he nor Signal own any MOB tokens.

In 2018, the project announced a fundraising round led by Binance Labs for USD 30m denominated in ethereum and bitcoin. Per TechChrunch, the payments network recently raised USD 11.35m in funding across two rounds from Future Ventures and General Catalyst.

Furthermore, Marlinspike is listed as Chief Technology Officer in the MobileCoin whitepaper.

And speaking of the whitepaper, developer Tadge Dryja said that he found a MobileCoin whitepaper, which is reportedly just a copy of the ‘Zero to Monero’ paper with a few changes.

Others made similar allegations, such as Riccardo Spagni, the former lead maintainer of Monero.

just setting up my twttr

— jack (@jack)

BlockTower Capital founder Ari Paul, however, commented that MobileCoin is not a fork of Monero, and that Spagni’s claims can’t be used as proof to the contrary as he’s “an altcoin [developer] criticizing competition.”

This was a part of a longer technical discussion and disagreement over the project’s specifics.

Per Marlinspike himself, “Signal chose to integrate MobileCoin because it has the most seamless user experience on mobile devices, requiring little storage space on the phone and needing only seconds for transactions to be confirmed.”

The market situation caught the eye of analysts and traders, including Eric Wall, the Chief Investment Officer of the crypto hedge fund outfit Arcane Assets, who likened MobileCoin to an inedible footlong sandwich filled with a bunch of random ingredients.

just setting up my twttr

— jack (@jack)

At 14:32 UTC, MOB trades at USD 40 and is down by 38% in a day, erasing almost all its weekly gains. The price is still up by 648% in a month.

Kimchi Premium Vanishes, then Returns as Bank Issues Appear to Have Hit Upbit
Kimchi Premium Vanishes, then Returns as Bank Issues Appear to Have Hit Upbit 101
Source: iStock/TwilightShow

Widespread reports of a return of the kimchi premium appear to have been shrouded in confusion after bitcoin (BTC) prices plummeted briefly on a number of domestic exchanges before rising back above the USD 62,000 mark – while the market-leading Upbit platform suspended fiat withdrawals, possibly due to a banking issue.

The platform announced that it was conducting an “urgent inspection of KRW deposits and withdrawals,” but did not specify what the issue was in an official notice.

However, the Upbit operator Dumanutold the media outlet TechM that the issue was with a “fiat deposit and withdrawals service provider,” and “not with Upbit’s servers.”

The problem, however, may lie with the exchange’s banking partner. As previously reported, Upbit has partnered with the neobank K-Bank, with whom the crypto exchange’s customers are obliged by law to hold real-name authenticated accounts if they want to use Upbit services.

At around 7 AM UTC, BTC prices fell by 8% on leading platforms on yesterday’s prices, with some altcoins falling by 20%. But prices bounced back just an hour later. TechM stated that this sparked a massive rush in BTC buying. That made K-Bank “temporarily suspended related services and begin to inspect operating systems.”

But the issue may run deeper than this. Indeed, it may have been the straw the broke the camel’s back.

SBS reported that the K-Bank’s Upbit partnership may have become too successful for its own good. While business is booming with new crypto-related account creation and trading volumes via Upbit remain sky-high, the bank is not performing as well when it comes to doing what banks traditionally do – i.e. lend money.

The company’s mortgage products have experienced a much less positive uptake, the media outlet reported, a fact that has raised red flags. The latest surge in fiat-fuelled crypto buying may have tipped K-Bank’s payment model into dangerous territory.

The media outlet reported that the bank had lowered the interest rate of four new products “from today,” and had decided to stop new sales of one of its “preferential terms” deposit offerings from next month.

SBS labeled the issue an “emergency in managing K-Bank’s loan-to-deposit ratio.”

On the kimchi premium issue, the CryptoQuant CEO Ju Ki-young claimed there was evidence of “arbitrage” as Upbit rival Bithumb had seen “BTC inflow mean” increase “while all other exchanges” had seen falls. “It seems some whales are depositing BTC to Korean exchanges,” he wrote.

But per EToday, opinions are divided on the matter of the kimchi premium. A researcher quoted by the media outlet stated that they doubted there would be any sharp rises in the discrepancy between South Korean and overseas exchanges, with experts claiming that medium to long-term, prices would likely correct, despite short-term “burdens” for South Korean BTC traders.

For those about to ring the alarm bells, it may be worth pointing out that at the peak of the kimchi premium (2017-early 2018), when South Korea accounted for almost 9% of the global BTC market, sustained premiums of 30% were regular, and the premium peaked at a whopping 55%. Experts have previously told Cryptonews.com that a return to these heady days are extremely unlikely.

Per Scolkg data at the time of writing (UTC 12:11pm), the kimchi premium is now back at around +12%, with a difference of about USD 6,400 in the price of BTC 1 on Upbit and Binance.

Binance Boss CZ Only Has Eyes for Bitcoin and BNB
Binance Boss CZ Only Has Eyes for Bitcoin and BNB 101
Changpeng Zhao. Source: Instagram, Binance

Changpeng “CZ” Zhao, the head of Binance, one of the world’s biggest crypto exchanges, said that his crypto portfolio is made up entirely of bitcoin (BTC) and his own company’s binance coin (BNB).

In a Twitter post, Zhao wrote that while Binance “holds a bit of everything listed,” his own personal holdings comprise of “some” BTC he “bought in 2014” and BNB, of which he said had “higher volatility and risk than BTC.”

But he dismissed all other altcoins, including ethereum (ETH), writing that he “[doesn’t] have time to research other coins.”

“Many people,” he concluded, “Still don’t know to save on fees using BNB.”

Binance’s token and blockchain protocol has set itself up in direct competition with the Ethereum network, where spiraling gas prices and scalability issues have been a constant irk for many of the protocol’s users.

However, it likely equates to a huge stash of tokens.

In an interview with Bloomberg, Zhao also commented that “close to 100%” of his net worth was “invested in crypto.”

He said,

“I don’t own any fiat. The physical stuff that I own is probably negligible in terms of my net worth. So this is a concept shift. I’m not using crypto to buy fiat, I’m not using crypto to buy houses. I just want to keep crypto. And I don’t plan to convert my crypto into cash in the future.”

He also spoke of how he first developed an interest in bitcoin, claiming that he had been introduced to the matter by Bobby Lee, the then-CEO of BTC China, in 2013, as well as the investor Ron Cao, then at Lightspeed China Partners, who “brought the concept up at a friendly poker game.”

He recounted,

“[Lee and Cao] said, ‘CZ, you should convert 10% of your net worth into bitcoin, because there’s a very small chance it will go to zero and you will lose that 10%. There’s a high chance it will go 10x, and then you would double your net worth.’ And I was like, well, that’s a pretty serious proposition.”

He explained that he then preceded to download the Bitcoin white paper, noting,

“Back then, there wasn’t a whole lot of educational content online. I read the white paper. I understood it pretty quickly, coming from a technology background.”

Pretty soon, he was sold on the idea, claiming that he eventually sold his apartment and quit his job so that he could buy BTC and later joined Blockchain.info (now better known as Blockchain.com), where he worked for “just under a year or so,” before realizing that his “strength” was in “the exchange-trading business.”

But although Zhao conceded that he buys “a lot of gadgets,” he claimed not to have a car or a house as he thinks they are poor sources of liquidity. He opined,

“The problem with cars, houses, is that I just don’t think they’re liquid. As soon as you buy them, you can’t trade out of them that easily. You can rent an apartment or stay in a hotel – that gives you much higher liquidity. So I’m one of those guys who value liquidity much more than owning something. I actually prefer not to own anything.”

At the time of writing (12:20 PM UTC), BTC trades at USD 56,142 and is down by almost 5% in a day and 4% in a week. BNB dropped by more than 5% today, trimming its weekly gains to less than 18%, and is trading at USD 365. It rallied by 2,309% in a year, while BTC jumped by 670% in the same period of time.