The Next Few Months Will Be Bumpy, Binance CEO CZ Warns.
Turbulent Times Ahead
Binance CEO Changpeng Zhao, or CZ, has reportedly warned his staff about expecting to see turbulent times ahead in the next couple of months following mass amounts of customer withdrawals the exchange faced this past week.
According to a report by Bloomberg, the Binance CEO sent a memo to his staff explaining that Binance itself is still currently in a strong financial position and will undoubtedly “will survive any crypto winter,” however, will see a challenging few months ahead.
“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,” CZ wrote to the Binance team.
CZ then goes on to explain that Binance is currently facing a lot of scrutiny and questions from the public, but that the “organization is built to last and will survive any crypto winter.”
Binance Mass Withdrawals
These last few days Binance has been seeing a massive spike in its crypto withdrawals, with a reported total of $3 billion in net outflows on Tuesday, December 13th alone.
This was mainly due to the massive amounts of criticism and nervousness within the community surrounding the exchanges’ “faulty” audit report that was published last week, which caused several high-profile figures to speak out against Binance.
Former U.S. Securities and Exchange Commission (SEC) regulator John Reed Stark pointed out that Binance’s recent “proof of reserves” report failed to “vouch for the numbers.” While Kraken’s founder and CEO Jesse Powell called the audits “either ignorance or intentional misrepresentation.”
There's a spike in withdrawals from Binance in the last 24H with -$1.6B* netflow
Its 7-day netflow is now at -$1.9B, currently this is less than the -$2.3B weekly netflow Binance has processed in the wake of FTX collapse
*ETH & ERC20 tokens only pic.twitter.com/pwbeQXtDxK
— Nansen 🧭 (@nansen_ai) December 13, 2022