Just as the cryptocurrency leader Binance (Binance) encountered a “withdrawal wave” and users withdrew their funds one after another, there seemed to be an unknown turmoil under the undercurrent, and the rain was about to come.
According to an internal memo cited by Bloomberg, Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, warned employees that a period of turmoil is expected in the coming months.
According to reports, Changpeng Zhao stated in a letter to his employees:
While we expect the road ahead to be quite bumpy in the coming months, we will ride out this challenging period – and we will come out stronger for it.
The net outflow of funds in the past week was as high as $3.6 billion as investors began to question the exchange’s financial situation and withdraw funds after widespread criticism of Binance’s “Proof of Reserves Report” released last week.
Zhao Changpeng said that Binance is facing “a lot of additional scrutiny and difficult issues (withdrawal tide)”, but will still try its best to ensure that “Binance is enduring and can survive every crypto winter in the future.”
