A new message came from Binance and its CEO, the world’s largest cryptocurrency exchange in terms of daily trading volume. In the email sent to users, Binance CEO Changpeng Zhao tried to clear any doubts that might be in the minds of customers. Here are the details…
Binance CEO aimed to address users’ concerns
Binance CEO’s personal email aims to address the concerns of his individual customers. It also aims to illuminate the future outlook of the stock market. Binance CEO Changpeng Zhao reportedly sent a personal email to individual customers in which the group reassured Binance’s future and solvency. cryptocoin.com As we have reported, the collapse of one of the largest centralized exchanges, FTX, caused a great panic. Binance is also fighting the FUD (fear, uncertainty, doubt) caused by the FTX collapse. He has taken many steps in this respect. In the latest step of the PR campaign, CZ took up the management of client wallets and funds between Binance and its retail customers.
The email highlights that Binance keeps accounts separate. It also reportedly conducts “daily reconciliation of all crypto assets held by Binance on behalf of its clients.” The CEO stated that Binance is working to protect all crypto assets of customers. In this respect, it is stated that there are separate accounts defined as different from the accounts used to hold cryptocurrencies belonging to Binance. User funds are also in these separate accounts. Also, according to the email, “the exchange uses its own wallet infrastructure to protect user assets and Binance’s own assets.”
So, the CEO pointed out that customers’ assets are definitely not used for Binance’s transactions. According to the CEO, the exchange conducts its operations with its own assets and never touches customer assets. Meanwhile, it was noted that the funds were kept in special accounts defined by each user for himself. Because such a service increases the costs of infrastructure services. This is why large, competent organizations use such a method.
He also touched on hot-cold wallet transfers
Changpeng Zhao also touched on the fact that funds are sometimes moved between hot and cold wallets. As it is known, seeing such movements in the network arouses curiosity among the community. Zhao stated that the reason behind these transactions was to “save network fees.” In this way, he pointed out that the exchange offers low transaction fees. According to CZ, the exchange uses hot wallets as a pool. The main funds are kept in cold wallets. He stated that if the liquidity in hot wallets falls below a certain limit, a reinforcement is made from the cold wallet.
The latest Binance campaign has now reached a personal level for individual customers. Private and personal email and retail customers are no strangers to the actions of CZ and Binance. Binance wants its retail customers to know that no other FTX scenarios are coming. The message can be a good way to calm individual investor concerns during the holiday season.
