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Could becoming the richest person of Chinese descent? Zhao Changpeng responds: Valuation without liquidity is meaningless

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Could becoming the richest person of Chinese descent? Zhao Changpeng responds: Valuation without liquidity is meaningless

Chinese media "Caijing" released a post on Weibo on the 30th, estimating that the company's valuation will reach $300 billion, based on information from an unnamed insider at Binance. It is speculated that the founder and CEO, Zhao Changpeng, who is rumored to hold 30% of the shares, has a net worth of $90 billion, surpassing Nongfu Spring Chairman Zhong Shanshan, and becoming the richest person of Chinese descent.

Zhao Changpeng Responds: Valuation Without Liquidity is Meaningless

While the community may be excited about the idea of Zhao Changpeng being considered China's richest man, he remains rational. He stated on Twitter:

"If I sell 0.01% of a company's stock for $1 to someone, the company would be valued at $10,000. If I issue a coin with a trillion circulating supply and sell one coin for $1 to someone, the total value of the coin would then be a trillion dollars."

Valuation without liquidity is meaningless

In fact, although the market capitalization of cryptocurrencies continues to hit new highs, the volume of circulating transactions reflects the actual value and stability in fiat currency that can be realized under high valuations.

Binance US's IPO Plan

While Zhao Changpeng may not be too interested in the high net worth presented by cryptocurrency, Binance is actively seeking to make an appearance in a market widely recognized by the public: the U.S. stock market.

During the Bloomberg Forum on 11/19, Binance founder Zhao Changpeng stated that Binance.US will complete its Pre-IPO in one to two months. He mentioned that the second round of financing is around hundreds of millions of dollars, primarily aimed at diversifying investors and following the footsteps and processes of Coinbase's listing.