Binance CEO CZ talked about the rumours and said that Binance is not under a liquidity crunch.
Binance is a popular crypto platform and in the present time, this exchange is standing at the first rank in terms of 24 hours global crypto trade volume on its platform. The services of this exchange are associated with multiple crypto projects, where Exchange has its centralised & decentralised ecosystem.
Recently Changpeng Zhao, CEO of Binance exchange, appeared in an interview with CNBC Squawk Box. In the interview, Zhao mainly talked about the trusted crypto services from the Binance exchange, which always remains transparent to crypto traders.
Zhao said that it doesn’t have a situation like FTX’s liquidity crunch and also covers withdrawals easily to every user’s withdrawal on time.
Further CEO added:
“People can withdraw 100% of the assets they have on Binance. We will not have an issue on any given day. So 100% of users withdraw 100% of assets, we’d be fine.”
Binance CEO also explained that the business model of crypto exchanges is different from the traditional banks’ business because crypto exchanges may not survive on fraction reserves, unlike banks.
Also, the Crypto Exchange founder confirmed that there are no central banks in the crypto world, which can print money for collapsed banks, so here crypto exchanges always need to hold user assets one-to-one as a single option.
Just a few weeks ago, International custody platform Mazars confirmed that Exchange was holding more than 100% of user’s fund reserves but still few fake news & rumours were able to shake the exchange. Under the influence of negative news, many people withdrew huge amounts of funds from Binance but the Binance team was able to handle the situation because of its fully trusted services.
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