Binance Founder CZ and BNB Relationship Shaken by Crisis

Among the darlings of the cryptocurrency markets, Binance and its founder Changpeng Zhao (CZ) are experiencing a serious management battle with the BNB treasury. Recently, the close ties of CZ with YZi Labs, which highlighted that the current management of CEA Industries is taking shareholder-unfriendly steps, have drawn attention to this conflict.

Initially appearing to work in harmony, the parties have faced a major crisis within just five months. YZi Labs pointed out that the share right plans and amendments to the articles of association implemented by CEA Industries limit shareholders' rights. This mechanism, known as a poison pill, offers existing shareholders the right to purchase shares at a 50% discount in cases where 15% or more of the shares are accumulated without approval from the board of directors, making potential management changes more difficult.

During the escalating tensions, YZi Labs made aggressive attempts to gain control of the board. Notably demanding the expansion of the board and the reversal of amendments to the articles of association, YZi Labs aimed to increase its stake in the company by forming a coordinated group among shareholders. Despite the completion of a $500 million private equity investment in July, the performance of CEA Industries shares was found unsatisfactory.

The company’s fundamental strategy has failed to reflect the rise of BNB, and CEO David Namdar’s statements suggesting a future shift towards different cryptocurrencies like Solana raised concerns among investors. YZi Labs President Ella Zhang emphasized that they will continue to protect shareholder interests and support the value of the BNB ecosystem.

According to recent data, CEA Industries shares have decreased by 36.67% in the last six months, while the price of BNB has increased by approximately 38% during the same period. This situation clearly highlights the strategic conflict between the parties and necessitates caution among investors.