CZ: Binance responded swiftly to the attack incident to prevent the spread of panic, and user trust in the platform remains quite solid.
48 minutes ago
Binance founder Changpeng Zhao (CZ) told an interviewer that following the attack, Binance immediately came forward to clarify that user funds were unharmed and user assets were safe. While this was a straightforward statement, it effectively halted the spread of panic and prevented a chain reaction. The market recognized the incident would not lead to further spillover effects. Unlike past cases where platforms or lending protocols collapsed, leaving users to absorb losses, this time users would not be forced to bear related losses— a stark contrast to previous incidents that often triggered second and third rounds of cascading shocks. First, this statement calmed the market, Zhao noted. Second, Binance’s ability to stand behind this commitment on its own credibility made users willing to trust the firm’s words, especially since much of the fund flow and transaction data on the blockchain is public and transparent. Users understood Binance had sufficient financial strength to cover any losses: the exchange holds the SAFU (Secure Asset Fund for Users), a futures insurance fund, as well as robust capital reserves and a strong balance sheet. It is this rapid response, proactive accountability, and ability to ensure all users are protected and all losses are covered that gradually restored calm to the market. One notable detail: on the day of the hack, the cryptocurrency market’s decline was actually smaller than that of the tech stock market—a scenario almost unheard of. Typically, when stocks fall, crypto markets drop more sharply as investors sell digital assets to hold cash. But this time, even amid a major hack in the crypto sector, the market’s pullback was milder. Zhao said this shows investors remained largely calm overall, and reflects the solid trust in platforms built over years. “I am very proud of this,” he added.
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