CZ warned Binance employees in a memo that the exchange could face more tough times in the coming months.

In light of net outflows and wild speculation flying against the largest cryptocurrency exchange, Binance’s CEO Changpeng Zhao (CZ) has written to his employees, warning them of possible turbulence that could befall the exchange in the coming months. At the same time, CZ affirmed that Binance would pull through the tough times.

Binance CEO Warns Staff to Brace up For The Tough Times

In a memo seen by Bloomberg, Binance’s CEO remarked that the current tumultuous state of the cryptocurrency market, spurred by the collapse of FTX, is “a historic moment” for the emerging digital asset sector. Although not involved, CZ said FTX’s fiasco brought “a lot of extra scrutiny and tough questions” on Binance.

Zhao also told Binance’s employees that the situation could linger for the coming months, but the exchange is financially strong and will survive any crypto winter. “While we expect the next several months to be bumpy, we will get past this challenging period — and we’ll be stronger for having been through it,” CZ added.

FUD on Binance hit a peak on Tuesday, which subjected the largest cryptocurrency exchange to experience an unusual volume of outflows. CZ acknowledged that the exchange processed over $1.1 billion in net withdrawals yesterday, but on-chain reports suggested the volume could be higher.

Binance Still Holds Over $59 Billion in Reserve

Despite this, there was no case of withdrawal default during this period, except for the USDC, which was paused to facilitate a token swap involving BUSD. As of today, CZ tweeted that the withdrawals on the exchange have stabilised, with deposits increasing again.

Binance still holds over $59 billion in its wallets, according to data by Nansen. The majority of the funds are held in BUSD (25.7%) and USDT (20.63%). Binance holds 15% of the reserve in Bitcoin, while its native coin, BNB, only accounts for about 10% of the reserve. This would somewhat indicate that the speculations of insolvency at Binance are baseless.

~ By Ibiam Wayas ~