Binance co-founder and CEO Changpeng Zhao has given several interviews discussing the outlook for the cryptocurrency after a turbulent few weeks in the market.
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more than a month after the collapse ftxInvestor concerns over crypto exchange Binance is not disappearing.
Binance’s Native coin BNB is down 15% over the past week, including a drop of more than 6% in the last 24 hours. BNB, first minted in 2017 The fifth most valuable cryptocurrency in the world with a market cap of around $39 billion coinmarket cap, it’s only behind Bitcoin, EthereumTether and USD Coin.
The latest issue emerging on Binance is the bankruptcy proceedings of FTX. Binance was the first outside investor in FTX. Last year, Binance received a payment equivalent to approximately $2.1 billion when it exited its equity position in the company.
In an interview with CNBC”squawk boxOn Thursday, Binance CEO Changpeng Zhao dismissed concerns that his company could withdraw that money as FTX makes its way through bankruptcy court and trustees look to withdraw any. fraudulent transportation Created by FTX for external businesses or investors.
“We’re fine financially,” Zhao said, after being asked by CNBC’s Becky Quick whether the company could handle the $2.1 billion demand.
Crypto investors have become suspicious of comments from top executives regarding the financial health of their companies. FTX founder and ex-CEO Sam Bankman-Fried said on Twitter that his company’s assets were fine, even as executives knew it was in the midst of a liquidity crunch that eventually forced the exchange into bankruptcy. done. Bankman-Fried was arrested this week in the Bahamas and charged up by US prosecutors on charges of fraud and money laundering.
Withdrawal demand is another area of concern. zhao said net withdrawals on Tuesday of about $1.14 billion, but tweeted that it was “not the highest withdrawal we’ve processed, not even the top [five]On Wednesday, he said the situation “has stabilized.” Blockchain analytics firm Nansen said withdrawal number reached $3 billion on Tuesday.
A Binance spokesperson told CNBC in a statement that, “We passed this extreme stress test because we run a very simple business model – keeping assets in custody and generating revenue from transaction fees.” The spokesperson did not immediately respond to a question about the decline in BNB.
Binance and FTX were closely linked. Zhao publicly announced last month that his company was liquidating your position in fttFTX Native Coin amid concerns over the solvency of both FTX and its affiliated trading firm, Alameda Research.
FTX then faced an immediate surge in withdrawal requests, and Binance stepped in. non binding agreement To acquire the company as part of a rescue plan. a day later, binance supported out of the deal, stating that FTX’s “issues are beyond our control or ability to help.”
Like all major crypto projects and companies, Binance developed its own currency. on that Website, the company says that people can “use BNB to pay for goods and services, settle transaction fees on the Binance Smart Chain, participate in special token sales, and much more.” The site states that areas where BNB could be used include payments, travel, and entertainment.
According to CoinMarketCap, approximately 160 million of the total maximum supply of 200 million is the circulating supply of BNB. Bloomberg reported In June the SEC was investigating whether the 2017 token sale constituted a security offering that should have been registered with regulators.
— CNBC’s MacKenzie Sigalos contributed to this report.
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