By George Ward
In a Twitter interview dated December 27th, Changpeng Zhao, the CEO of Binance, talked about the crypto sector in 2022. The CEO also answered questions about the crypto sector.
Users Question The Safety Of Funds On Binance
Most of the questions were light-hearted. Some users asked if the Binance boss was the famous Satoshi Nakamoto, the inventor of Bitcoin. Other users asked him if users’ funds are safe on Binance, given the recent FTX collapse.
The crypto boss responded, “we have 100% reserves on all coins on Binance. Users are free to withdraw if they have any concerns.” In recent months, centralized exchanges such as KuCoin, Kraken, and Binance have been under intense scrutiny.
The November 11th FTX bankruptcy case only fueled the issue. Sam Bankman-Fried, the past CEO of the FTX exchange, allegedly misused investors’ funds after moving them to Alameda Research.
The incident and a looming bankruptcy forced investors to move their assets to hardware wallets. The platform’s native token, FTT, crashed during the crisis and became worthless.
Those who had invested in the token lost all their investments. Responding to the situation, numerous crypto exchanges, including Binance, conducted PoR audits and published the report.
The aim was to revive users’ confidence in centralized exchanges. During the interview, the interviewer asked Zhao if he could have managed the FTX crisis. The Binance CEO answered, saying that prevention is better than cure.
“There are few business principles that you must not violate. One of them is never to touch investors’ funds. Ensure their funds are separate from that of the company and kept secure,” he stated.
According to Zhao, all Binance staff can sleep well at night because they have not crossed any “ethical boundaries.” Previously, the crypto entrepreneur claimed that he asked Bankman-Fried to confess his crimes before FTX went bankrupt.
In the interview, Zhao said don’t try to deceive anyone if harm has already been done.
Twitter Community Predicts Rough Times In 2023
Meanwhile, the Twitter community has responded to Zhao’s recent interview. Although the Binance CEO has over 8 million followers on Twitter, many of them were not optimistic about the future of Binance.
Zhao believes that the crypto and DeFi sectors will flourish in 2023. However, a Twitter user, @Ster247, argued that Binance’s capitulation is on the way.
According to @Ster247, there will be more macroeconomic headwinds in 2023. The user believes these factors would pull down the crypto sector.
Other users accused Binance of operating without complete transparency even though the exchange released its PoR audit reports at the beginning of December. Twitter users complained that the report did not highlight the crypto exchange’s liabilities.
According to a recent warning from an SEC official, traders and investors need a report that accurately accounts for a firm’s assets and liabilities to determine if the firm is solvent. The SEC official warned crypto investors not to always believe in PoR audit reports and should do additional research.