Binance CEO weighs in after news that electric vehicle maker Tesla has dumped the majority of its Bitcoin (BTC) holdings.
In a new interview with Fox Business, Binance CEO Changpeng Zhao told Host Neil Cavuto’s folks shouldn’t read too deeply into Tesla CEO and crypto advocate Elon Musk, who is dumping Bitcoin so heavily.
“He’s a smart guy, but that doesn’t mean he owns every valuable possession in the world. He probably doesn’t hold many other company stocks, many other valuable cryptocurrencies, etc.
Just because he buys and sells some bitcoin doesn’t mean it got better because he bought bitcoin, or because he sold bitcoin it got worse.”
Please @cz_binance
Chatting with the beautiful @teamcavuto pic.twitter.com/7Zqq1Ymubf
— Susan Li (@SusanLiTV) July 22, 2022
The CEO of Binance, who Forbes ranks number one on its list of wealthy crypto personalities, says that no matter what a big investor does, Bitcoin continues to prove itself both structurally and in terms of user popularity.
“The basics are there, the use cases are there, the user numbers are there, the community is there. The fundamental properties of bitcoin have not changed because one guy bought or sold.
Nobody knows the reasons why he bought or sold. Maybe he needed money for Tesla or was trying to buy Twitter or something else, I don’t know. But it doesn’t really mean much.”
Earlier this week, Tesla announced that it sold 75% of its BTC holdings in Q2 2022 for $936 million in cash.
Musk explained the reasons for the move in an earnings call from the company, saying:
“It should be noted that the reason we sold a bunch of our bitcoin holdings was because we were unsure of when the Covid-19 lockdowns in China would ease.
Therefore, it was important for us to maximize our cash position given the uncertainty of the Covid-19 lockdowns in China.
We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as a judgment on bitcoin.”
As of June 30, the total value of Tesla’s remaining bitcoin was $218 million.
Bitcoin is currently down 1.45% in the last 24 hours and is trading at $22,731.
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