- “Impermanent loss is usually permanent loss,” said Binance CEO Changpeng Zhao in his latest tweet.
- Zhao asked his followers to stay safe and added that stablecoins were not always stable.
- However, some of his critics called him out for listing fraudulent stablecoins such as First Digital USD (FDUSD).
Changpeng Zhao, the CEO of Binance, took to Twitter to inform his followers that loss termed “impermanent loss” is usually permanent loss, irrespective of the name used. “Don’t let a term fool you,” said Zhao in his latest Tweet. Impermanent loss is a term used in DeFi when the price of users’ deposited assets changes compared to when they deposited them.
Zhao also added that “stable” coins are not always stable. “Learn risk management. Stay #SAFU,” stated the CEO. “SAFU” is a term coined by YouTuber Bizonacci as a play on the word “safe.” It was later used for the Binance emergency reserve.
The comments section under Zhao’s post was flooded with responses siding with Zhao and reiterating the importance of research before investing. Crypto analyst Katherine responded, “Tbh the cryptocurrency space carries inherent risks, and it’s vital for participants to be informed and exercise prudent risk management strategies to safeguard their investments. It’s always SAFU to Always do thorough research before investing in any cryptocurrency or participating in DeFi activities.”
However, not everyone is on Binance’s side. Another analyst that goes by the name “Not Tiger Global” called out Zhao for talking about safety and fraudulent practices in the crypto space but in the same breath launched fraud stablecoins. This was in response to Binance listing the new stablecoin First Digital USD (FDUSD) on the platform. “The best part about this is @cz_binance literally tweeted about stablecoins not always being stable this morning,” said the trader.
However, a few hours after announcing the listing, Binance released a statement saying that the listing would be postponed due to FDUSD pairs’ liquidity providers experiencing technical issues. “We will halt trading for First Digital USD (FDUSD) at 2023-07-26 09:45 (UTC) and cancel all pending orders on FDUSD, to ensure utmost protection for our users,” read the release.
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