It is stated that company founder Changpeng Zhao is investigating ways to sell most of his Binance US shares.
'CZ' Binance, CEO of Cryptocurrency Exchange Binance. Wants to Sell US Shares
Zhao has been trying to sell a portion of his stake in Binance.US since last summer. It was not disclosed how much of Zhao's shares he wanted to sell, or the reasons behind his decision. However, the reasons seem more or less obvious.
Binance.US launched in 2019 and is a separate entity from Binance, which operates in many other countries. Currently, Binance owns a minority stake in Binance.US, while the company is mostly owned by US investors.
Sources state that Binance.US is trying to reduce Zhao's stake in the company to make it easier to attract more investors and partners.
Another major reason for this is said to be regulatory uncertainty in the USA. Because of the uncertainty of the regulations in the USA, all companies feel insecure. CEOs of companies like Ripple had called on young people to "stay away from the US if you want to make a startup". Institutions, which are on their toes due to uncertainty, have recently preferred to move their headquarters from the USA.
Zhao has been a vocal advocate of cryptocurrency and blockchain technology and has been actively involved in promoting the adoption of cryptocurrencies worldwide.
He founded Binance in 2017 and has since grown into one of the largest cryptocurrency exchanges in the world.
It is currently unclear how or when Binance.US plans to reduce Zhao's stake in the company.
But if this move is successful, it could help the stock market attract more investors and partners, which could ultimately lead to further growth and expansion in the US market.
*Not investment advice.