The anticipated return of Changpeng ZHAO, founder of Binance, to the forefront after his surprise release this Friday, September 27, 2024 shook the crypto market. After serving a prison sentence for regulatory violations, CZ was released two days ahead of schedule, which immediately impacted the prices of Bitcoin and BNB. This release comes in a context where Binance, the world leader in crypto exchanges, is trying to recover from the sanctions imposed by the American authorities.
Bitcoin and BNB play yo-yo
On September 27, 2024, Changpeng ZHAO, founder and former CEO of Binance, was released after serving a four-month prison sentence. This release had a direct impact on the crypto market. Shortly after the announcement, the price of Bitcoin recorded a small drop. After reaching highs during the day, the crypto fell in the face of the uncertainty generated by this news. Similarly, BNB, Binance's native crypto, saw its price decline. This immediate market reaction is explained by questions about the future of Binance and the future involvement of CZ, as Binance attempts to reinvent itself after a series of regulatory lawsuits.
However, this decline was short-lived. A few hours after his release, CZ published his first tweet, and this simple communication was enough to revive the markets. Bitcoin and BNB recorded a 3% rebound. Despite his conviction and removal from Binance's day-to-day affairs, CZ remains a key figure whose actions continue to impact the trust of players in the crypto ecosystem.
The release of CZ: a new era for Binance?
Although CZ's release has captured attention, it does not mean a return to the helm of Binance. Since his conviction, Binance has undertaken deep structural reforms to move away from the controversial image left by CZ. Richard TENG, former Abu Dhabi regulator, took charge. Binance has implemented a strengthened governance model, focused on regulatory compliance. TENG notably claimed that the company had pivoted towards a more transparent and centralized approach, a transition described as “Binance 2.0”. This new organizational structure aims to meet the requirements of regulators, notably those of the Department of Justice which, as part of a settlement, imposed rigorous supervision on Binance's activities for three years.
Although CZ no longer plays an active role in daily management, its influence still remains significant. As a majority shareholder, holding 90% of the exchange's shares, he remains a key player. However, this release would constitute a new chapter for CZ, with initiatives outside of Binance, such as the Giggle Academy, an educational project aimed at disadvantaged populations. However, the challenges for Binance are not over. The company still faces lawsuits from the Securities and Exchange Commission (SEC), which could impact its ability to maintain its market dominance.
The release of Changpeng ZHAO represents a pivotal moment for the future of Binance and, more broadly, for the entire crypto market. If Binance has been able to evolve without its founder at the helm, its influence on the crypto ecosystem remains strong. The rebound in Bitcoin and BNB following his tweet illustrates this influence. Now, Binance must succeed in convincing regulators, maintaining investor confidence, and better managing the consequences of ongoing legal cases.
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