- Binance withholds 100 reserves on every single coin.
- CZ stated cryptocurrency firms should never touch users’ funds.
The world’s largest cryptocurrency exchange Binance CEO Changpeng Zhao ‘CZ’, sat down for a round of questions. And CZ answered anything from how to buy a cool Binance sweatshirt to the FTX collapse in an interview video that was released on Binance’s Twitter account on December 27.
The CEO of Binance stated candid answers in a video that, so far this year, the crypto exchange has entered 33 new countries. Binance offers its service in over 140 countries with more than $120 million registered users.
What will CZ do if Binance goes Bankruptcy?
According to CZ, despite the condition of the market, if all users decide to withdraw their funds at the same time, Binance is ready to file for bankruptcy. He added that it would be completely fine and Binance has more than 100 reserves on every single coin.
Further, in a bankruptcy situation, the Binance trust wallet and user’s assets would be safe due to the user’s self-study private key, even if Binance completely disappears or shut down the exchange.
It would be difficult to manage while the exchanges attempted to move tens of billions of dollars in user funds and failed. CZ reportedly stated that whether Binance encountered a situation similar to collapsed FTX, the best thing to do is “stop everything, be transparent, communicate, be open.”
Also, Binance CEO Changpeng Zhao ‘CZ’ offered some key principles for managing a business;
Never touch user’s funds, keep them secure, keep them separate and run a healthy business. Around a sustainable business, don’t take shortcuts. I think prevention is much much more important than handling.
Finally, CZ shared the three most valuable lessons that he learned while building the Binance empire. Binance CEO always focuses the ethical boundaries and never crosses the boundary into unethical behavior, never looks at user funds, and never acts in a way that harms users. Binance is extremely fortunate to have a strong team that contributed to building a very successful platform. The coolest CEO ended the conversation by stating that it was important to stay in touch with everyone in the community, including users, regulators, and traditional financial players.
