Binance CEO CZ Hosts Twitter Space, Over 500,000 Listens

All eyes are on Binance following the dramatic saga of events that caused FTX to collapse over the past week. Binance CEO Changpeng Zhao, commonly known as CZ, took to the Twitter spaces hosted by the Binance Twitter account on Monday.

More than 40,000 listeners listening live, and space was listened to more than 500,000 times in less than 48 hours. It was CZ’s biggest AMA, in terms of length and ratings, and comes at a crazy time for the market.

Binance Hosts Twitter Space: CZ’s Initial Remarks

The Twitter space started with a Binance host throwing out some initial questions to set the stage for a Q&A session that lasted over an hour in total. Here are the main beats covered in the first discussion topics:

  • Evidence of reserves: CZ started the conversation by noting that he is actively discussing a new proof of reserve protocol with Ethereum’s Vitalik Buterin, noting that he is “very excited about it” and positioning Binance as a testing ground for it. He added that “anything we can do to increase transparency is good” and maintained a pro-proof stance.
  • State of play at Binance: Asked about the platform’s cautious users, CZ made reassuring remarks, stating that “we don’t have loans, we don’t have debts,” while emphasizing that there are no risky loans contracted with users to generate returns. He added that the platform offers limited challenge, with no exposure to third-party managers, to minimize risk. CZ admits that exchanges are “inherently risky businesses”, but called Binance a “simple business” – one that doesn’t try to make money from trading itself.
  • Stablecoins & balance sheets: CZ believes in BUSD and describes it as “the most fiat stablecoin”, with fewer corporate bonds and treasuries than other stablecoins, while providing audit reports. According to CZ, BUSD is the “simplest stablecoin and is…very transparent”. Regardless of BUSD’s stance and with respect to exchange balance sheets, CZ believes that stablecoins should be a strong reserve asset in all exchange balance sheets due to the inherent stability.
  • An “industry stimulus fund”: CZ believes – and rightly so – that good projects will be innocent victims of the FTX fallout, and says Binance wants to help these projects survive the contagion. Binance still appears to be working out the details of what it looks like, but it’s currently a top priority for the company, and CZ added that several funds have reached out to help.
  • Where do we go from here?: CZ was hesitant to make strong statements regarding consumer recommendations, but suggested that consumers should “use discretionary money” exclusively to mitigate risk, or simply to stay put for those with doubts or uncertainties. . “Don’t guess what’s going to happen…it’s going to be very volatile,” with lots of positive and negative news, CZ says.
Binance (BNB) has a lot of eyeballs falling the downfall of FTX. | Source: BNB:USD on

Questions from the crowd

After the “warm-up” questions prepared in advance by Binance, CZ answered a few questions from the audience. We’ve listened to and described some of the biggest takeaways:

  • Contagion with Binance investments: CZ said he hasn’t heard any big calls for help from wallet companies, adding that the BNB ecosystem is “much less impacted” because it’s closer to the Binance ecosystem. However, given that Binance has 150 portfolio companies, CZ added that he cannot speak to the status of all of them, and some impacts from cascading contagion effects are likely to be expected.
  • Concerns about bank run withdrawals: It’s “business as usual” at Binance, according to CZ, with a slight increase in withdrawals but “in line” with withdrawal activity when there are substantial price drops.
  • Regarding Trust Wallet: Asked about Trust Wallet, CZ clarified that Binance owns the rights to Trust Wallet, but it is an open-source, self-custody wallet that is separate from Binance and not associated with any of Binance’s entities. ‘company. As a result, Trust servers have no access to user data and lost keys are lost forever (as would be the case with any other self-service wallet).
  • The state of trade today: Smaller exchanges are going to be hit harder by last week’s impacts, CZ said. However, he has maintained an outlook that he does not view other exchanges as competitors, and instead focuses on growing the industry to achieve commensurate growth – rather than taking market share at large. other scholarships. Other exchanges “don’t move the needle for us,” CZ says. He then addressed the nascent nature of the industry, contextually noting that it helps him understand people’s skepticism, especially about the events of the past week. He closed this section by saying that “you become great by gaining the trust of users”, not by behaving in a negative way, and that while he likes social media, the company must “work with traditional media, we have to educate them…teach that they see through the stories.
  • Evidence of inauthentic reservations: CZ will not speak on other exchanges regarding proof of reserves, and confirmed that there is no suspicious activity with Binance books. He added that exchanges “may or may not” have a valid reason to move funds before releasing proof of reserves, but believes this is a strong red flag.
  • Binance’s history in supporting FTX: One interviewer had a somewhat aggressive question about CZ supporting FTX; CZ’s response boiled down to “we invested early enough and exited early enough” in FTX, adding that both are well documented. CZ added that they sold a small part of FTT and still hold a big bag, contributing to the view that CZ holds – that he believes they acted ethically. Going forward, he wants to help FTX users within reason while understanding that personal responsibility always rests with individual users regarding the risk profile. CZ directly says here that Sam Bankman-Fried lied to employees, users, regulators, and that everything else aside, SBF should bear the majority of the blame.
  • Binance’s “Endgame” in the US: When addressing the United States in particular, CZ says they are “tool-makers, not politicians,” and therefore maintains a geo-neutral outlook; “We care about people,” CZ says, and he recognizes that they are running a business and therefore must follow business rules such as penalties. Although CZ believes it is unethical for companies to make individual and separate business decisions regarding sanctions, he understands that as a company he must follow the sanctions issued. In geopolitical discussions beyond the United States, he added that there is “strong evidence” that misinformation about Iran was provided to Reuters by the small domain “” (a supposed investor FTX), while acknowledging that he “could be wrong”. ” but still believes that the exchanges should work in collaboration instead of targeting each other.
  • Closing: In conclusion, CZ says he had no idea his tweet would cause so much disruption and apologized for any “fuss” it may have caused. That’s with one caveat, though: CZ believes the sooner a problem is revealed, the better. “We will try to strike a good balance between whistleblowing, panic, price crashes, etc. and building a healthy industry,” he said, adding that they will work closely with stakeholders. industry to keep building. A few “big” statements brought home the Twitter Space session, including that CZ is working to build a reputable crypto association with the biggest players in the industry, centered on transparency, proof of reserves, and serving as single point of communication around policies, leadership, etc. He also reiterated that he remains confident in the future of crypto, while seeing the future as decentralized: “I think the challenge is the end game.”
Featured image from Pixabay, Charts from

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