Changpeng Zhao, CEO, Binance. Image: Eric PIERMONT / AFP
Changpeng 'CZ' Zhao, Chief Executive Officer of Binance Holdings Ltd., downplayed concern about a recent wave of user redemptions from the world's largest crypto exchange, saying that customers could withdraw all of their funds without issue if necessary. CZ shared nine potential reasons for the recent FUD in a lengthy Twitter thread on Saturday, all of which are external factors. According to CZ, Binance's FUD is the result of outside factors, not the exchange itself.
Notably, Binance is currently riding a wave of FUD (fear, uncertainty, and doubt) as the exchange deals with multiple controversies, including a potential money laundering investigation and a sharp increase in customer withdrawals since the weekend. One of the reasons stated by CZ was that some members of the crypto community despise centralisation.
He said, “Some in our industry hate centralization. Regardless if a CEX helps with crypto adoption at a faster rate, they just hate CEX. Everyone is allowed to hold their views and voice their opinions. Nothing wrong with that…Some lose money on trading or experience other issues may blame and attack us. Not all cases have black-and-white right-or-wrongs…There may be a tiny number of people who are jealous, or just plain racist against Chinese-looking Canadians. Who knows? We don’t care…Writing about ‘Binance’ gets you more clicks.”
The crypto billionaire also mentioned the exchange's increasing competition and lobbying. He specifically alluded to the fact that disgraced FTX founder Sam Bankman-Fried secretly funded crypto outlet The Block. The executive also pointed out that conservative politicians who were working to protect traditional financial institutions from crypto disruption were spreading misinformation. CZ thinks that being conservative is not wrong. However, he thinks banks should embrace blockchain technology rather than fight disruption.
CZ mentioned, “Most of the above have no absolute right or wrongs. It’s just how our world is. We only need to recognize and understand it. We are not perfect. We welcome feedback, but ignore FUD. We focus on building our own products with your support.”
It was reported earlier, Binance saw more than $3 billion in net withdrawals in 24 hours earlier this month, as rumours about alleged platform issues spread like wildfire.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash