New Binance CEO Richard Teng pitches ‘very strong’ foundation to skeptics
Amid ongoing confusion, uncertainty and rumors around the recent departure of Changpeng “CZ” Zhao as Binance CEO, his replacement, Richard Teng, took to X (formerly Twitter) in an attempt to boost investor confidence.
Soon after CZ announced he was stepping down, Binance critics on X shared their opinions on what lies ahead for the crypto exchange. While some sought details on the source of funds for CZ’s and Binance’s legal proceedings and settlement, which exceed $4 billion in total, others claimed mistrust due to discrepancies in Binance’s previously shared proof of reserves (PoR).
The fundamentals of our business are VERY strong.
Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits. https://t.co/PHq2YS0CP5
— Richard Teng (@_RichardTeng) November 22, 2023
Coinbase director Conor Grogan estimates that Binance can pay off the hefty fines imposed by the United States Department of Justice (DOJ) without selling any crypto assets.
“The fundamentals of our business are very strong,” reassured Teng as he reposted Grogan’s analysis. He said the crypto exchange generates robust revenues and profits despite low platform fees.
In his introductory X post as Binance’s new CEO, Teng stated that “the foundation on which Binance stands today is stronger than ever.” For starters, Teng said he will focus on three aspects of the business: reinstating investor confidence, collaboration with regulators and driving Web3 adoption.
Related: Breaking: Binance’s CZ to plead guilty to violating Anti-Money Laundering requirements — WSJ
For CZ, passing on the CEO torch to Binance’s former global head of regional markets seemed a natural progression of the company’s evolution. “With Richard and the entire team, I’m confident that the best days for Binance and the crypto industry lay ahead,” he said in his exit note.
CZ further confirmed his plans to remain associated with Binance as a shareholder, adding, “I will remain available to the team to consult as needed, consistent with the framework set out in our U.S. agency resolutions.”
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ Binance (@cz_binance) November 21, 2023
CZ said he is interested in mentoring startup entrepreneurs and will also focus on decentralized finance (DeFI) initiatives.
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