Binance is suffering from pressure from the crypto community creating a wave of FUD against the cryptocurrency exchange that seems to be draining its crypto coffers, its CEO, Changpeng Zhao (CZ), now warns in an open note to his employees of impending turbulence .
In an open letter to the entire Binance team, CZ warns that the coming months are going to be tough, but he stressed that the cryptocurrency exchange will overcome the current challenges. Binance’s new challenge refers to the existing doubts that have submerged the health of the entity’s finances. Faced with these accusations not yet proven, the CEO of Binance cited how the crypto industry is going through a “historic moment” and how Binance is in a “very strong position in its financial positioning”, underlining:
CZ was not silent on the reasons for receiving so much pressure, stating the obvious, that the collapse of FTX has led to widespread mistrust and that it will bring “a lot of additional control and difficult questions” on Binance. For this reason, the Binance president wanted to reassure his team by informing his employees “that the coming months will be difficult, we will overcome this period and we will be stronger for having lived through it”, emphasizing its solid structure:
“Rest assured, this organization was built to last.”
Billions of Dollars in Crypto Start Leaving Binance Due to FUD
Currently, the big problem for Binance does not come from the regulators who will start asking many questions as collateral damage due to the FTX case, which recently culminated in the arrest of its creator, Sam Bankman-Fried. The big uncertainty stems from the constant reports on Twitter of mass outflows of cryptocurrency capital from Binance’s coffers, creating FUD if Binance will be able to remain liquid enough to handle all the withdrawals.
Faced with the avalanche of on-chain data about the cryptocurrency exits from the cryptocurrency exchange, CZ has come out to calm the waters and affirm that Binance has enough capital to withstand the downpour. CZ cited that the withdrawals do not even enter his top 5 events with the most cryptocurrency withdrawals, mentioning that they “processed more withdrawals with the LUNA and FTX crashes”, closing with “the deposits are starting to come back”.
It is not disproportionate for the crypto community to act in this fearful, near panicked manner. The case of FTX like that of Celsius or BlokFi, among others, has caused cryptocurrency users to act in a certain way like a herd of sheep moved by fear, but it is justified seeing the speed as it has occurred in the cases mentioned above. Only time will heal the wounds, obviously accompanied by transparency and facts