Binance Holdings Ltd. Chief Executive Officer Changpeng Zhao warned his colleagues to expect tough months ahead and said the firm will overcome current challenges, as the crypto billionaire tries to assuage concerns about the company’s financial health.
In a memo sent to staff, CZ, as the founder of the world’s largest crypto exchange is known, said the industry for digital assets is going through “a historic moment” and that Binance is in a strong financial position and “will survive any crypto winter.”
“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,” he wrote in the memo seen by Bloomberg. He added that FTX’s recent collapse has brought with it “a lot of extra scrutiny and tough questions” on his firm, referring to reports this week on customer withdrawals.
FTX’s shock collapse has rocked investor sentiment and prompted some traders to take control of their tokens, causing outflows at other exchanges. Binance was one of the exchanges hit by large outflows on Tuesday, which have since started to show signs of easing.
The memo and rebuttals on Twitter came on the back of a record number of net daily Bitcoin and Ether token outflows from Binance on Tuesday.
“Rest assured, this organization was built to last,” Zhao wrote in the memo.
Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of today's executives. Subscribe here.