In open letter, Binance co-founder calls “life and death situation”

Citing regulatory pressure and aggressive marketing from its competitors, Yi He, co-founder of Binance, sent a letter to its employees asking them to join this competitive battle. “life or death” with logic. The text was made available by the manager on her social networks this Wednesday (27).

Faced with various challenges, it is difficult to know which points Yi is referring to in his speech.

The Wall Street Journal wrote this on Tuesday (26), for example “The largest cryptocurrency company in the world is melting down”. The article cites the decline in Binance’s dominance in trading volume, especially in the US.

This Wednesday (27), Binance announced that it will leave Russia and sell its stake to a broker called CommEX, which opened a few days ago. According to international media, this raised “red flags”.

An article from Protos highlights that the source codes of Binance and CommEX are very similar, the same goes for the API codes and the language used in the terms of service of the two brokers.

“Binance is trying to maintain regional control in Russia through a proxy company.”

Finally, Protos points out that Binance is struggling to find partner banks in France and therefore could adopt a strategy similar to that in Russia.

Letter from Binance co-founder to its employees

Despite the new problems and accusations, Yi He’s letter is said to have been written in August. In other words, it highlights even older issues, likely related to the CFTC and SEC lawsuits, as well as mass layoffs and declining profits.

“Binancians, I’d like to talk about some key points we should keep in mind as we face increasing regulatory pressure and aggressive marketing from some of our competitors”begins Yi He in a letter to employees.

The executive then states that many competitors do not care much about KYC, compliance and other regulatory issues. “Our large size reduces our efficiency”Yi continues.

“I noticed that some of our employees responded with emotion rather than logic.”

Citing the fact that Binance had to deal with several “we strike with blood and fire” Since launch, Yi notes that this new battle will be no different, but it is far from the biggest challenge for the broker.

“In 2019 we faced even more challenging situations, and we won countless times, and this time too we will win”Yi continues. “Back then we didn’t have fiat currency or P2P futures […] Yet we managed to turn the tables and prevail [nesses campos].”

“Every battle is a life or death situation, and the only thing that can bring us down is ourselves.”

Throughout the letter, Yi states that Binance must continue to create excellent products, keep up with the competition and close existing gaps. Another request was the delivery of “excellent service”whether it is for support, complications or to attract new users.

Binance is fighting multiple battles at once

Although Binance is being sued by the US, it is also having some problems in Europe, where it is being investigated for money laundering. In Brazil, a CPI requested a breach of confidentiality of the broker’s clients after several financial pyramids cited Binance without their statements.

In other words, Binance cannot focus on a single battle and must spread its strength across several fronts.

On the other hand, their regional competitors can prepare better, despite not having big names on their payroll.

Source: Live Coins