Binance CEO Changpeng Zhao Asked On CNBC About The USDC Withdrawal Pause Here’s What CZ Thinks!
The eyes of the entire industry are growing with Binance. The exchange’s CEO, Changpeng Zhao (CZ), was interviewed by CNBC reporters. Specifically on the setbacks with this week’s currency move and the company’s solvency.
"The well run #crypto exchanges should hold user assets one to one. People can withdraw 100% of the assets they have on @binance. We will not have an issue," says @cz_binance. "In crypto, there's no central bank printing money to bail out banks when there's a liquidity crunch." pic.twitter.com/eAf2n7mAg0— Squawk Box (@SquawkCNBC) December 15, 2022
As a reminder, earlier this week Binance temporarily stopped withdrawals for the USD Coin stablecoin. Due to insufficient USDC reserves on the platform. But eight hours later, a tweet announced it was back to normal.
#Binance is conducting a token swap involving $USDC. As a result, $USDC withdrawals are temporarily paused.$USDT & #BUSD withdrawals are available and unaffected. $USDC withdrawals will reopen once the token swap is completed. https://t.co/CxgCGBUJEA— Binance (@binance) December 13, 2022
“People generalize, they hurt each other in an exchange, and then they generalize. It’s just human behavior.”
Binance Temporarily Stops Withdrawals
Regardless, Binance saw more than $3 billion in withdrawals after learning that the platform and its senior officials, including Changpeng Zhao, were under investigation by the United States.
For its part, CZ pointed out that the withdrawals observed on Binance are not unusual for the platform, assuring that on Binance “we have already seen it”.
“Some days we have net withdrawals. Other, net postings. Everything remains the same.”
Indeed, Changpeng Zhao emphasized that: “The past few hours of fear, uncertainty and doubt (FUD) have generated a stress test which helps to strengthen the credibility of the stock markets, which is able to pass it with flying colours”.
They announce that they have reinstated USDC payouts
Thus, the managing director of the exchange, Changpeng Zhao, said that withdrawals of funds by its clients have “stabilized”. After hitting a record number of transactions on Tuesday. However, this does not represent the end of the crypto winter: Zhao assured that the future of the sector will be “turbulent”.
“The situation has stabilized on its currency in an attempt to allay investor fears.”
Cz thanks everyone
I am grateful to each and every one of you for your incredible dedication and hard work. And I’m proud of the incredible company we’ve built together.”
Despite his public optimism, Zhao actually assured his employees via an internal email that Binance had “difficult months” ahead of them.
“Rest assured, this organization was built to last. Binance will survive today’s challenges.”
In addition, he insisted that his industry is more transparent than most traditional companies. And you will set the gold standard for reliability.
“In our industry, we don’t rely so much on trust, we rely so much on verification.”
Now pressed to answer whether Binance could repay the $2.1 billion it received by exiting FTX last year, Zhao said: “We are financially strong. We will leave that to the lawyers.”
Binance CEO Zhao brushes off $2.1 billion FTX clawback concerns https://t.co/8XDbYP7GP2— CNBC (@CNBC) December 15, 2022
In addition, the Binance team tried to point out that not all users have lost their trust. Over the past 24 hours, the exchange’s clients have entrusted more than $256 million in deposits to the platform.
I conclude with this quote from Changpeng Zhao: “The fact that I was bitten by a snake does not mean that any other animal is the same.”