Binance, one of the largest cryptocurrency exchanges in the world, has been facing concerning leadership changes and layoffs recently that call into question the safety of holding Bitcoin and other crypto assets on the platform, according to Crypto Rover, a Top Analyst on X (Twitter).
In the past year, Binance has seen many top employees and executives depart, including the CEO of Binance US. Just this week, Binance US laid off around 100 employees, almost a third of its workforce. In response to the news, Changpeng Zhao (CZ), the CEO of Binance, labeled it as “FUD” (Fear, Uncertainty, and Doubt).
However, this exodus of top talent from Binance is troubling. Why are so many executives leaving the company? Do they know something about Binance’s financial stability or security practices that the public doesn’t?
I think there is a high risk on holding your Bitcoin and crypto on #Binance
— Crypto Rover (@rovercrc) September 21, 2023
And here is why:
– The CEO of Binance US has departed
– Binance US has laid off 100 employees.
– CZ, the CEO of Binance, has responded to this news, labeling it as "FUD"
Over the past year, many top… pic.twitter.com/DkvNoSoWNy
Additionally, Binance’s audit reports remain questionable as they rely on “self-verification.” Without reliable third-party audits, we can’t be certain of the holdings and reserves that Binance purportedly has to back its users’ deposits.
Given these issues, there is considerable risk in holding significant Bitcoin or crypto assets on Binance right now. The departure of top leadership, layoffs, and lack of transparency around reserves suggest uncertainty about the company’s future. Users would be wise to withdraw their Bitcoin to private wallets where they control the keys.
Although CZ dismissed the concerns as FUD, there are legitimate reasons to be cautious about keeping funds on Binance. Until we see improved transparency and auditing, as well as stabilization of Binance’s executive team, it’s safest to hold your own Bitcoin keys. The mantra of “not your keys, not your coins” rings especially true today.
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