Binance, the world’s largest cryptocurrency exchange, recently made headlines for its decision to exit the Russian market. But the aftershocks of the incident led to further revelations, particularly regarding the involvement of former employees of the platform in new exchange CommEX.
Changpeng Zhao (CZ), founder and CEO of the world’s largest cryptocurrency exchange, took to X (formerly Twitter) to share insights into the shift.
Ex-Binance talent flocking to CommEX?
In what looks like a concerted decision, several former Binance employees, especially those from the cryptography and information security teams, migrated to CommEX.
Zhao’s comments about X suggest that these shifts may not be coincidental. “Some former Binance CIS team members may have already joineded their CommEX team, or have done so. We think that’s a good thing,” Zhao said, adding to speculation circulating in crypto circles Credit goes to this.
Some answers about Binance/CommEx.
Cryptocurrency transfers will take place between Binance and CommEx as users migrate with their funds. Older transactions still exist during the testing phase of the integration. This is expected.
Some former Binance CIS team members may join their team,…
— Czech Binance (@cz_binance) September 28, 2023
Notably, the connection between CZ’s cryptocurrency exchange and CommEX becomes even more apparent when observing the similarities in the user interfaces of both platforms.
In response to concerns and questions about the similarity, Zhao clarified that it was a carefully considered choice. “Their design, API, etc. are similar to Binance. We require this to ensure a smooth user experience.” CZ explained.
CommEX: A new challenger with familiar features?
Despite its recent launch, CommEX has managed to attract attention, in part due to its connection to the sale of Binance’s Russian operations.
The exchange has similar features to the CZ cryptocurrency exchange, such as spot, futures, simple futures, and P2P services, but does not cater to US or EU users. Zhao highlighted the presence of IP and KYC blocks on CommEX and stated that this is a condition that the exchange adheres to during trading.
Furthermore, in an effort to quell any rumors of hidden ownership or ulterior motives, Zhao made it clear that he has nothing to do with the new exchange. The CEO also talked about potential buyback options, reminiscent of other major business deals in Russia.
Zhao pointed out:
I am not their ultimate beneficial owner UBO nor do I own any shares in it. The transaction does not have any repurchase option. (A Google search seems to show that some companies like Mercedes, McDonald’s, Nissan, etc. had buyback options in the Russian sale. But that’s not the case here.)
CZ said that as the transition period unfolds, cryptocurrency transfers between the two exchanges are expected to become commonplace, especially as users move assets. Zhao added: “There are also older transactions during the integration testing phase. This is expected.”
Featured images from Unsplash, charts from TradingView