Binance CEO Changpeng Zhao assures that the company’s financial situation is solid

Binancethe world’s largest crypto exchange, seeks to calm the waters of the ecosystem of cryptocurrenciesafter the fall of FTX and the millionaire withdrawals that have been made in the last hours on its platform.

According to the firm founded by Changpeng Zhaothe current financial situation of the company is solid, despite the large withdrawals that have been registered on its platform in recent days, which it considers to be “not unusual.”

“Our financial situation is strong. We often process more than $1 billion in deposits or withdrawals daily. So it’s nothing unusual (large withdrawals),” Zhao wrote in an internal letter sent to his staff. employment and to which this medium had access.

Among the arguments that Zhao explained to the collaborators of Binanceis that this company maintains hot wallet balances to ensure that they always have more than enough funds to comply with withdrawal requests and consequently top up balances in these wallets.

Likewise, he said that the assets of the more than 120 million users of this platform are supported one by one and, also, the capital structure of this company is free of debt.

Last Tuesday, different media outlets reported a massive withdrawal, equivalent to $1.9 billion, from Binance and, in addition, a temporary pause in withdrawals of the USDC stablecoin.

Slowness blocks withdrawals

Regarding the temporary blocking of USDC withdrawals, Zhao explained in the letter that within Binance’s operation this stablecoin is generally converted to another BUSD coin (Binance USD), in order to retain large liquidity reserves and usually USDC deposits are held for future withdrawals.

“Many people deposited BUSD or USDT (Tether) to withdraw USDC. When this happens, we have to convert. Our current conversion channels are clumsy,” Zhao justified, arguing that to make these conversions, said operation involves a bank in New York , where the dollars are stored, which delays the process.

“We are going to improve this in the future. With everything that is happening, we know that we are in a historic moment in crypto. Rest assured, this organization was built to last,” Zhao stressed.

The founder of Binance He assured that although the context of cryptocurrencies is currently complicated, with significant falls in their value and the collapse of several critpoexchangea historic moment is being experienced, which is an opportunity for this firm to improve its service and processes.

“As long as we continue to offer users the best product, the best user experience, and a frictionless trading environment, Binance it will survive any crypto winter. While we expect the next few months to be challenging, we will get through this period and be stronger for having gone through it,” Zhao said.

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