CZ strikes back: The truth about Binance and the liquidation vote

Fri 04 Aug 2023 ▪ 3 min of reading ▪ by Evans S.

The drama surrounding the supposed liquidation of Binance’s US branch thickens, with CEO Changpeng Zhao (aka CZ) personally stepping in to refute the rumors. So where does the truth lie behind this whole saga?

CZ réfute le FUD : Les faits derrière le vote de Binance

The master’s voice: Changpeng Zhao (CZ) speaks out

In the midst of the media storm surrounding Binance and the threat of liquidation, CZ has decided to take the lead. In an incisive tweet, it denied the information conveyed by The Information, describing the quality of their research and validation as “appalling”.

This statement comes as no surprise, as a corporate executive would seek to dispel any concerns that might disrupt his or her operations.

CZ went further, highlighting a crucial detail: the voting process. “If it is a board vote, 1 vote holding out of 3 won’t stop anything. The 2/3 wins”, he clarified.

Furthermore, he suggested that the board’s deadlock on the issue had no real impact.

Changpeng Zhao also pointed out that Binance.US CEO Brian Shroder, although opposed to the liquidation, is not an investor and therefore his vote does not carry the same weight as that of the shareholders.

FUD: A powerful tool in the information war

CZ ended its tweet by accusing the report of propagating “FUD”. An expression widely used in the crypto sector to stand for “Fear, Uncertainty, and Doubt”.

It’s a disinformation technique that involves influencing perception by disseminating negative information, whether true or false.

CZ has subtly turned this weapon against its accusers, insinuating that the liquidation rumors were deliberately spread to harm Binance. Which, in itself, could be a clever defense strategy on the part of the CEO to galvanize support in the crypto community.

So, what do these revelations mean for Binance? Although speculation about the liquidation of Binance.US has been debunked, it reflects a troubling reality: the increased regulation facing the platform. The regulatory challenges remain real. Despite this, CZ has shown unfailing resilience in the face of these challenges. It is undeniable that, in the face of these obstacles, Binance and CZ intend to stand firm.

Receive a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don't miss any of the essentials of Cointribune!

Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.