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Changpeng Zhao, the CEO of Binance, concurred that the exchange had a difficult year, just like the rest of the cryptocurrency community. The market was in pandemonium earlier this month as a result of the large withdrawal streak. CZ has again received a similar inquiry despite reassuring the community about the exchange’s reserves and stability. CZ was questioned if Binance would collapse or become bankrupt if users all withdrew their money at once during a recent AMA session. The CEO of the biggest cryptocurrency exchange in the world stated, “Short answer is no.” CZ elaborated on how the swap would be quite acceptable.
As previously mentioned, Binance noticed a surge in withdrawals starting on December 12 and continuing until December 14. A total of $6 billion was lost from the exchange during this time. According to reports, the main cause was speculative worries about the exchange’s reserves. Binance’s representative confirmed that user assets are backed by 1:1, similar to CZ. Additionally, as shown in the data above, Bitcoin outflows rose in November and December 2022. However, CZ promised that funds in the Trust Wallet would be secure even if there was a chance that Binance would shut down.
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Never touch user monies, CZ instructs his colleagues.
The FTX disaster and its aftershocks contributed to market uncertainty. The cryptocurrency sector was interested to see how Binance would respond to this situation. CZ highlighted how essential it was to avoid getting into such a predicament in the first place. However, CZ emphasized the significance of being “transparent, open, and communicative” when managing billions of user cash. He went on to say, More importantly, the key is to stay far away from it. There are some corporate ethics that you should never break, one of which is “never handle user funds. Run a safe, sustainable business while keeping them apart and in a secure environment. Don’t cut corners. CZ continued on the year to come, saying that 2022 was a tough year. He so hopes that good things happen throughout 2023. This necessitates additional programmers and builders making user-friendly applications for common users.
The community’s objections were recently addressed by Changpeng Zhao, CEO of Binance.
The first thing Changpeng Zhao mentioned was that he is not Satoshi Nakamoto. He acknowledged visiting 33 nations and local regulatory bodies in the previous year. Changpeng Zhao added that even if every user starts a withdrawal at once, Binance won’t fail. Users can withdraw money whenever and anywhere they want because every cryptocurrency on Binance has 100% reserves at all times.
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Changpeng Zhao said that before addressing how to prevent risks similar to FTX, Binance must first make sure that it does not find itself in the same situation as FTX. Anyone who manages risk cannot transmit billions of dollars in user money. Be upfront, avoid shortcuts and be transparent.
The CEO recently shared his opinions on the Binance FUD. He enumerated the top seven grounds for people’ suspicions that Binance is a fraud. One of the causes is that because of broad generalizations that equate the exchange with other failed centralized businesses like FTX, people like to spread FUD about Binance.
Given that Binance is currently one of the biggest cryptocurrency exchanges in the world, CZ has a lot of faith in it. Because of this, some business people view Binance as a rival and occasionally try to discredit the exchange in an effort to bring them down a notch. Some media sites receive payment to disseminate false information regarding FUD Binance, which is completely governed by a rival.
Cryptocurrency acceptance is still in its early stages; it is believed that less than 5% of the world’s population has adopted it. Many people continue to be hesitant about cryptocurrencies. The enormous magnitude of Binance. More people click on “Binance” than on other exchanges. Although the glomming market has had a negative influence on many crypto businesses, it is evident from his comments that he has big aspirations for Binance.
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