Binance Chief Warns Employees of Challenging Times Ahead amid Crypto Winter

UTC by Ibukun Ogundare · 3 min read
Binance Chief Warns Employees of Challenging Times Ahead amid Crypto Winter
Photo: Web Summit / Flickr

The Binance CEO also spoke about the USDC withdrawal suspension while explaining the impact of the crypto winter.

Binance founder Changpeng Zhao has sent a memo to employees to inform them of the challenging months ahead amid the persistent crypto winter. In addition to warning to look out for tough times, the CEO also assured staff that the company would survive the current troubles. In the memo, the Binance chief said the company is in a strong financial position to” survive any crypto winter.” He also emphasized that the digital asset industry is currently passing through “a historic moment.”

“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.”

Binance CEO Speaks on Crypto Winter and Coming Challenging Months

Zhao referred to the FTX crash, which has triggered concerns and fears among members of the crypto world. He mentioned that the exchange’s collapse, which contributed to the crypto winter, also attracted “extra scrutiny and tough questions” on Binance. Due to the crypto companies shutting down here and there, many investors decided to take control of their tokens. This led to outflows on many major exchanges, including Binance, which recently saw large outflows. At the same time, rumors of the US Department of Justice (DOJ) considering slapping the exchange with criminal charges contributed to the massive withdrawals. Between December 7th and December 13th, the company recorded net outflows of $3.6 billion. At the time, CZ said the withdrawals were “business as usual” for Binance, assuaging investors’ fears, especially during this crypto winter.

“We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us. I actually think it is a good idea to ‘stress test withdrawals” on each CEX on a rotating basis. It costs some network fees to run these “tests.” But keeps the industry healthy. Exchange business is simple.”

The Binance CEO also spoke about the USDC withdrawal suspension while explaining the impact of the crypto winter. He said the company generally retains USDC deposits for future withdrawals. According to Zhao, Binance was “built to last.”

Crypto exchanges have been working on publishing their audit report to prove to customers that their assets are safe. Since FTX crumbled unexpectedly, other exchanges have seen the need to be transparent and assure customers of continued trust in the crypto space. When Binance released its Proof-of-Reserve report, it faced many questions about its financial health. A spokesperson for the exchange said it is collaborating with global audit corporation Mazars on sharing relevant financial information. The representative noted that Mazars would help verify its data accuracy and process extracting the data.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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