During a recent talk, Binance founder Changpeng Zhao (CZ) explained how the crypto exchange stays safe when the market goes crazy. He shared a wild story from December 2022 to show why users should feel confident.
Key Highlights:
Full Reserves: CZ promised that Binance holds all user funds 1:1. This means for every dollar a user has on the app, Binance actually has that dollar in the bank. 💰
The Big Test: In just one week in late 2022, worried users withdrew $15 billion. On the busiest day alone, Binance processed $7 billion in payouts! 💸
Keep Calm and Carry On: While everyone was panicking, CZ was actually out at dinner. He said he wasn't worried because he knew the systems were built to handle the pressure. 🍽️
Transparency is Key: Because of "Proof of Reserves," anyone can check the blockchain to see that the money is really there. 🔍
The Bottom Line: CZ believes that as long as the tech works and the money is accounted for, the exchange can survive even the biggest market panics. ✅
