There has been a lot of speculation and rumors about the recent deal between CZ Binance, the founder and CEO of Binance, the world’s largest cryptocurrency exchange, and CommEx, a new digital asset platform backed by some of the biggest names in the industry. Some people claim that CZ Binance has sold his Binance affiliate program to CommEx, effectively giving up his control and influence over the Binance ecosystem. But is this really true? And what are the implications for Binance users and the crypto community at large?
Changpeng “CZ” Zhao on Thursday denied that he is the owner of CommEX, the mysterious company that has bought Binance’s business in Russia. Binance, of which CZ is the founder and chief executive officer, this week announced it was quitting Russia after reports of a U.S. Department of Justice investigation into sanctions violations. That led to questions around the identity of CommEX – a company with similar user look and feel to Binance, and which appears to just be a few days old. “I am not their UBO [ultimate beneficial owner], nor do I own any shares there,” CZ said of CommEx in a post on X, formerly Twitter, adding that a few former Binance staff from the region have gone to work for CommEX, or may do so in future.
First of all, let’s clarify what the deal actually entails. According to the official announcement, CZ Binance has agreed to transfer his Binance affiliate program, which rewards users for referring new customers to the exchange, to CommEx. This means that from now on, users who sign up for Binance through CommEx will receive a portion of their trading fees as a commission, instead of getting it from Binance directly. CommEx will also provide additional incentives and benefits for its users, such as access to exclusive products, services, and events.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
However, this does not mean that CZ Binance has sold or given up his stake in Binance, or that he has any less influence or authority over the exchange. He remains the founder and CEO of Binance, and he still owns a significant share of the company. He also retains his role as the leader and visionary of the Binance ecosystem, which includes various initiatives such as Binance Chain, Binance Smart Chain, Binance Launchpad, Binance Academy, Binance Charity, and more.
So why did he decide to transfer his affiliate program to CommEx? The answer is simple: to create more value and opportunities for both platforms and their users. By partnering with CommEx, CZ Binance can leverage its network and resources to reach more potential customers and expand his user base. CommEx, on the other hand, can benefit from CZ Binance’s reputation and expertise in the crypto space, and offer its users a seamless and secure way to access the Binance platform. Together, they can create a win-win situation that enhances the growth and innovation of the crypto industry.
In a blog post published on September 28, CZ clarified that he has not sold or given up his stake in Binance, and that he remains fully committed to the vision and mission of the platform. CZ explained that he has been receiving a lot of questions and comments from the community, media, and regulators about his role and status in Binance.
He said that some people have been spreading false information or making baseless assumptions that he has either sold his shares, stepped down from his position, or left the company altogether. He stated that none of these claims are true, and that he is still the largest shareholder and the CEO of Binance.
He also reiterated that he has no plans to change his role or sell his stake in the near future, and that he is proud of what Binance has achieved so far. He said that Binance has grown from a small startup to a global leader in the crypto industry, with over 2,000 employees, 100 million users, and millions of transactions per day. He said that Binance has also contributed to the development and innovation of the blockchain ecosystem, by supporting various projects, initiatives, and charities.
CZ acknowledged that Binance has faced some challenges and difficulties in the past year, especially in terms of regulatory compliance and user protection. He said that Binance has been working hard to improve its systems, processes, and standards, and to cooperate with regulators and authorities around the world. He said that Binance is committed to providing a safe, secure, and compliant platform for its users and partners.
Therefore, there is no reason to believe that this deal is a conspiracy or a betrayal of the Binance community. On the contrary, it is a smart and forward-looking decision that shows CZ Binance’s vision and leadership in the crypto space. He is not selling out or abandoning his loyal followers; he is creating more value and opportunities for them. And he is not losing his influence or control over Binance; he is strengthening it by forging strategic partnerships with other players in the industry.