- A well-known innovator reached out to former Binance CEO Changpeng Zhao (CZ) with a proposition of collaborating on an asset tokenization initiative, but CZ did not respond.
- As he outlined his investment principles, he heaped importance on product viability, user growth, revenue, and team strength.
- The rejected proposal had tried to revolutionize finance itself by tokenizing assets like real estate, commodities, and stocks.
Changpeng Zhao (CZ), the Former Binance CEO, declined a proposal from a well-known innovator seeking to collaborate on an asset tokenization initiative. Recently, an innovator approached Zhao with an email offering to work with him or purchase the idea. Zhao responded on his X post and talked about his rejection, voicing the reasons for his refusal. He does not seek to acquire ideas and is not impressed by fancy models, claimed the Binance co-founder.
CZ Defines His Investment Philosophy
Zhao proposed the key investment strategies for those who are looking for collaboration. In this interview, he emphasized the importance of focusing on something fundamental, evaluating crypto projects based on tangible metrics. The aim was to evaluate whether a product is viable as the growth of users, revenue and profit, and the strength of the team. According to Zhao, such elements are necessary to the stability of a project before investing.
Moreover, Zhao continued to stick to his long-term investment approach beyond fundamental analysis. Early stage investments and holding for long periods are his priority and he considers it as the risk involved. Even though many early ventures would eventually fail, he is convinced that having significantly greater rewards from successful projects outweigh any losses.
Zhao’s Investment Approach
In addition, Zhao pointed to his affection for backing “mission driven founders.” According to him, people with a strong vision to create a successful company are more successful than those driven mainly by financial gains. He says that the founders who are led by a higher purpose generally create more sustainable and impactful enterprise.
Zhao has pointed out that his investment strategy centralises more on founders full of strong mission than on any financial business. The mission puts both successful and highest performing companies because those focusing on the amount of earnings in monetary terms invariably struggle once they hit moderate levels of success due to such sole concentration. However, entrepreneurs with a bigger vision create a business that not just can survive but also serves a meaningful legacy.
A prominent innovator who contacted Zhao brought his concept as a unique way to do something revolutionary in financial sector. The idea behind the proposal is to make it easier to produce a broad scope of financial products and at the same time boost the role of real estate, commodities, and stocks as assets meeting the criteria of backing and collateral within the sphere of cryptos.
