Changpeng Zhao, the CEO of Binance Holdings Ltd., tried to allay employees’ fears about the company’s financial stability by alerting them to expect challenging months in the future and promising them that the company will overcome current obstacles.
The founder of the largest cryptocurrency exchange in the world, CZ, sent a note to the team in which he indicated that the crypto market is witnessing “a historic moment” and that Binance is in a good financial position and “will survive any crypto winter.”
“While we expect the next several months to be bumpy, we will get past this challenging period – and we’ll be stronger for having been through it,”
he mentioned in the memo seen by Bloomberg
FTX’s fall brought scrutiny to Binance
Referring to this week’s news on customer withdrawals, he stated that FTX’s recent collapse has led to “a lot of extra scrutinies and serious questions” being raised about his company.
After FTX’s surprise fall, traders opted to take control of their tokens, which caused outflows at other exchanges. One of the exchanges affected by significant withdrawals on Tuesday was Binance, albeit these outflows have now begun to slow down.
CZ’s exchange has experienced massive outflows of money as a result of the FUD that the Reuters piece generated. Patrick, an on-chain analyst, submitted statistics showing that yesterday, almost $5 billion was withdrawn from Binance.
According to a recent tweet from Changpeng Zhao, FUD brought about a stress test that will help exchanges that pass the exam gain trust. He also mentioned that customers might utilize TrustWallet to store their own currencies, emphasizing the significance of protecting private keys.
As per CZ, major exchanges have been attempting to spread misinformation about the exchange since day one of the Binance ICO. He also emphasized that they have since learned to disregard the FUD and continue building.
In other news, after about 22 months since the global exchange first made the feature available to its users outside of the United States in 2021, Binance US has begun rolling out its Binance Pay service.
The service, which first launched in beta in February 2021 for peer-to-peer payments before being made available to merchants on March 12 for fee-free transactions, enables mobile users of the Binance app to instantaneously transact with nearly 150 supported cryptocurrencies.