• Mike Novogratz, the founder of Galaxy Digital Holdings, endorsed Binance and its CEO Changpeng Zhao (CZ)
• US Department of Justice earlier this month made an announcement of charges against a crypto company, which had the cryptoverse speculating which exchange it could have been
• Novogratz noted that Binance has a „giant percentage of the liquidity“ and that CZ has always been focused on customer service, so he believes that people need to cheer for the Binance and the success of CZ
Crypto financial services firm Galaxy Digital Holdings‘ founder Michael Novogratz recently spoke to Real Vision Crypto about his opinion on the major crypto exchange Binance and its loyal retail following. With the US Department of Justice recently announcing charges against a crypto company, speculation arose as to which exchange this could be.
Novogratz commented, „And I was like, please don’t have it be Binance. We need to cheer for Binance.“ It turned out to be a little-known Hong Kong-registered exchange called Bitzlato. Its Russian founder Anatoly Legkodymov was arrested by US authorities for allegedly processing $700 million in illicit funds. Binance, however, had had some involvement in the case, with the US Department of the Treasury writing in an order that the world’s largest crypto exchange by trading volume was Bitzlato’s top receiving counterparty of bitcoin (BTC) between May 2018 and September 2022. Binance said that it „provided substantial assistance to international law enforcement partners in support of this investigation.“
Novogratz went on to note that Binance has a „giant percentage of the liquidity“ and that CEO Changpeng Zhao (CZ) has always been focused on customer service. Therefore, Novogratz believes that „He’s got a very loyal, giant retail following that believe[s] in our ecosystem. We need those guys.“ Novogratz said that he sees numerous people online who seem to want Binance and CZ to fail, but „it’s the wrong thinking,“ he said, adding:“We need CZ to succeed.“
Novogratz’s comments are indicative of the importance of Binance and its success in the crypto industry. Binance is the world’s largest crypto exchange by trading volume and has a giant percentage of the liquidity, making it an important part of the ecosystem. Furthermore, CZ’s focus on customer service has earned him a loyal retail following, making it even more important for Binance and CZ to succeed. Novogratz’s endorsement of Binance and CZ sends an important message to the industry that they need Binance and its retail following in order to be successful.