Tesla dumping 75% of its bitcoin doesn't 'mean much', says world's richest crypto billionaire - Here's why

Tesla dumping 75% of its bitcoin doesn’t ‘mean much’, says world’s richest crypto billionaire – Here’s why

Binance CEO comes after news broke that electric vehicle maker Tesla has offloaded the majority of its Bitcoin (BTC) holdings.

In a new interview with Fox Business, Changpeng Zhao, Director of Binance recount host Neil Cavuto, people shouldn’t read too deeply into Tesla CEO and crypto advocate Elon Musk who cashes in so heavily on Bitcoin.

“He’s a smart guy, but that doesn’t mean he owns all the valuable assets in the world. He probably doesn’t own a lot of stocks in other companies, a lot of other valuable cryptocurrencies, etc.

Just because he buys and sells bitcoin doesn’t make it better because he buys bitcoin or it gets worse because he sells bitcoin.

The CEO of Binance, which Forbes ranks number one on its list of wealthy crypto personalities, says that no matter what any big investor does, Bitcoin continues to prove itself both structurally and in terms of user popularity.

“The fundamentals 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 what are the reasons for which he bought or sold. Maybe he needed money for Tesla or he was trying to buy Twitter or something, I don’t know. But that doesn’t really mean much. »

Earlier this week, Tesla revealed that it sold 75% of its BTC holdings for $936 million in cash during the second quarter of 2022.

Musk explained the rationale for the move during a company earnings call saying:

“It’s worth mentioning that the reason we sold a bunch of our bitcoin holdings was because we weren’t sure when the Covid-19 lockdowns in China would ease.

It was therefore important for us to maximize our cash position, given the uncertainty of the Covid-19 related lockdowns in China.

We are certainly open to increasing our bitcoin holdings in the future, so this shouldn’t be taken as a verdict 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, trading for $22,731.

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