CZ Advises BNB Treasury Firms to Use Third-Party Custodians
Binance founder Changpeng "CZ" Zhao has emphasized the importance of using third-party custodians for firms investing in a corporate BNB treasury. This advisory comes amidst growing interest and risks associated with Digital Asset Treasuries (DATs).
- CZ advises all DAT companies to use third-party crypto custodians to enhance transparency and security.
- This recommendation follows concerns over QMMM, a crypto treasury firm, which allegedly disappeared with investors' funds after being accused by the SEC of stock manipulation using social media.
- QMMM had planned to invest $100 million in Bitcoin, Ethereum, and Solana, with its stock price significantly increasing post-announcement.
- CZ states that using third-party custodians will be a prerequisite for BNB DAT projects seeking investment from YZi Labs.
Further developments include:
- China Renaissance Holdings is raising approximately $600 million for a new BNB treasury company, with contributions from YZi Labs and others.
- Applied DNA Sciences secured up to $58 million for a BNB treasury strategy through a PIPE offering.