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“Binance Has No Plans for an IPO” Says Company CEO Changpeng Zhao

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After Binance introduced Wei Zhou as the company’s new Chief Financial Officer in a tweet, a lot of speculators saw the move as a preparation for the company to launch its IPO.

Zhou’s Experience With IPOs

The speculations seemed valid since Mr. Zhou does not only boast of over 15 years of experience in leading Internet, media and technology companies but has also built up a significant level of experience and expertise in the financial management sectors.

In fact, throughout his career, Zhou has led two companies to IPOs (Zhaopin.com and Charm Communications) on the New York Stock Exchange and the Nasdaq, respectively. He was also responsible for orchestrating the landmark acquisition of Grindr, which is a social networking platform for the LGBTQ society. Wei has also started his own version of Goldman Sachs in Hong Kong where investment bankers have moved to Asia to focus on the organization’s special situations group.

Zhou’s significant experience in the capital markets, added to the fact that he has taken multiple companies through their IPO listing processes, has provided enough reason to believe that his appointment to Binance would be for the primary purpose of launching an IPO for the giant crypto exchange company.

No IPO for Binance

However, this couldn’t be further from the truth.

The CEO of Binance denounced the rumors in a tweet that said, “We have no plans for an IPO, but that doesn’t make those experiences less valuable in our new industry. On the contrary, those are very much needed. We are always looking for top talent, from traditional finance, internet… any industry and anywhere in the world!”

Even though Binance will benefit from the financial expertise that Zhou is set to bring from the traditional financial world, it is unlikely that the company will launch an IPO. Considering the fact that the company made over 150 million last year in an ICO, it is highly unlikely that the company would need to collect more funds.

Furthermore, the company had an income of over $200 million in the first quarter of 2018 with a growing global user-base of crypto traders.

Image Credit: Deposit Photos

 

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