FUD and pressure create a tight team internally, while collaboration and cooperation build trust externally, Zhao said.
Changpeng Zhao, CEO of cryptocurrency exchange Binance, believes his company has built “a tight-knit team” in part due to the “fear, uncertainty, doubt” (FUD) that often surrounds the company.
The company has been dealing with regulatory issues from the U.S. Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and other regulators for years. CEO Zhao has consistently claimed in statements that Binance cooperates with regulators and that some media outlets have falsely reported negative news about the market.
“Fighting in the trenches”
Changpeng Zhao, known as CZ in the cryptocurrency community, explained in one of his recent Twitter posts that the external pressure and FUD that has been hitting Binance has been a key factor in forming a “strong/tight-knit team.”
"It's not fancy team-building dinners, outings, etc. It's not coaching exercises, mentors, or magical shrinks. It's not rousing speeches from inspiring leaders. All of the above help but wear off over time, but the secret is just... some external pressure."
The CEO claimed that his team has “been fighting together in the trenches,” which has built “dependence, alliances, resilience, and most importantly, trust” among members. Furthermore, the fight has united the Binance community, making them more supportive of the exchange.
He added: “This in turn makes us even more determined to achieve our mission to increase the freedom of money for people around the world.”
Despite the frequent attacks, Binance, which turned six earlier this month, remains the world’s largest cryptocurrency exchange. Its market share in spot trading is close to 56% (in June), while its competitors Coinbase and OKX have less than 7%.
Partial Charge
Modern Media Ltd., an organization that manages Bloomberg content in Hong Kong, described CZ last summer as the head of a Ponzi scheme, with a laundry list of hits that included allegations of money laundering and possible links to the dark web and North Korean hackers.
Zhao called Bloomberg "unprofessional" and disagreed with their claims. He went a step further and sued the media for defamation.
Reuters also took shots at Binance, claiming that Israeli authorities seized around 190 cryptocurrency accounts from the platform in 2021. According to the news agency, some of the addresses were linked to terrorist organizations Hamas and the Islamic State.
The exchange insisted that a media reporter "deliberately omitted key facts" to report negatively on Binance.
Recent disputes with the SEC and the Department of Justice are also worth mentioning. The regulator filed a lawsuit against Binance in June, accusing it of violating multiple rules and providing trading services for unregistered securities such as BNB and BUSD. The DOJ targeted Zhao, claiming that he may have been involved in money laundering.
The latest allegations coincide with the departure of some Binance executives. Nonetheless, Zhao said the reason was not what the “news” imagined.