Binance Co-Founder Yi He Refutes Sale Rumors
In recent days, rumors swirling about the potential sale of Binance have been decisively rebutted by co-founder Yi He, who labeled the speculation as a calculated distraction orchestrated by the exchange’s competitors. The unfounded claims gained momentum following a viral post that mistakenly suggested that Binance was on the brink of a sale. The post included a screenshot from crypto commentator Cloak M, which seemed to indicate a looming transition of ownership, but without naming any potential buyer.
Yi He Sets the Record Straight
Taking to X to address the situation, Yi He firmly denied the rumors, asserting that Binance’s business model is robust and continues to thrive. In her statement, she criticized the spread of misinformation, accusing rival firms of employing crisis public relations tactics to detract attention from their own issues. He emphasized that Binance frequently attracts institutional investors eager to discuss potential partnerships and investments. While she did not dismiss the idea of future collaborations or acquisitions involving other exchanges, she confirmed that Binance is not for sale. “If there are other trading platforms with sales plans, please feel free to contact us,” she quipped, thereby highlighting Binance’s stable position in the market.
Recent Corporate Activity: A Closer Look
The rumors of a sale surfaced concurrently with news that Binance had liquidated over 24 million XRP from its corporate reserves. This selloff was a part of a larger strategic adjustment, which also included a staggering 94.1% of its Bitcoin (BTC), nearly all Ethereum (ETH) and USDT, and 99% of its Solana (SOL) holdings since January 2025, amounting to an impressive $8 billion. However, despite this significant reduction, Binance’s BNB holdings saw only a modest decline of 16.6%, and user reserves actually increased by $4 billion, reaffirming the platform’s commitment to protecting customer funds.
A recent Proof of Reserve (PoR) report corroborated that Binance’s XRP holdings dwindled from 115 million to 90.4 million tokens, yet the exchange maintained a healthy reserve ratio of 103.29%, underscoring its focus on fund security and customer trust. Alongside the XRP liquidations, Binance also converted billions in BTC, ETH, SOL, and USDT into USDC, suggesting a strategic pivot rather than a complete exit from these assets. While the motivations behind these asset sales remain somewhat ambiguous, Binance’s customer support clarified that the actions were related to treasury accounting adjustments, rather than any intention to directly sell into the market.
Market Leadership in 2024
Despite the challenges posed by recent rumors and regulatory scrutiny, Binance has successfully retained its title as the foremost cryptocurrency exchange in 2024, commanding an impressive 40% of the total market with an astounding $7.35 trillion in trading volume. Bybit trailed in a distant second with a market share of 9.3%. Notably, Crypto.com emerged with the most substantial growth, showcasing a phenomenal 970% increase in trading volume—jumping from $120.6 billion in 2023 to $1.29 trillion in 2024.
Other exchanges like Bybit and Gate.io also witnessed significant expansions, recording increases of 398% and 242%, respectively. This competitive landscape underscores the ongoing evolution and vigor of the cryptocurrency exchange market following regulatory bodies’ scrutiny, adaptive strategies, and shifting investor behaviors.
Legal Developments: A Temporary Respite
In parallel to these developments, both the U.S. Securities and Exchange Commission (SEC) and Binance filed a joint motion on February 10, 2025, seeking to pause their ongoing legal proceedings for 60 days. This “60-Day Pause” motion, submitted to the U.S. District Court for the District of Columbia, reflects a mutual recognition of the SEC’s recently formed crypto task force, helping both parties navigate the evolving regulatory landscape.
Why It Matters
The denial of the sale rumors signifies Binance’s commitment to transparency and trust within the cryptocurrency community. Such assertions are crucial as they help stabilize market sentiments, especially during tumultuous times marked by regulatory challenges and outlandish speculations. Furthermore, maintaining a clear line of communication fosters investor confidence, which is paramount in a highly volatile market.
Expert Opinions
Industry analysts have reacted positively to Yi He’s comments, stating that reaffirming the business model is essential for Binance to maintain its competitive edge. “In the face of growing competition, clear communication from Binance is vital for investor sentiment,” noted cryptocurrency analyst Max Thompson. “Companies, especially in the crypto space, must prioritize transparency to navigate regulatory challenges effectively.”
Future Outlook
As Binance navigates these uncertain waters, industry watchers will be keenly observing its strategic moves in partnerships, acquisitions, and regulatory compliance. With ongoing discussions about potential blockchains and alliances, alongside growing interest from institutional investors, there is significant potential for Binance to reinforce its dominance in the cryptocurrency sector while safeguarding user assets and maintaining trust.