In a recent tweet, Changpeng Zhao (CZ), the CEO of Binance, the world’s largest cryptocurrency exchange by trading volume, shared his insights on building strong teams and the role of external pressure in the company’s success.
CZ began his tweet by addressing a frequently asked question about the best way to build tight and strong teams. He revealed that the secret is not found in team-building dinners, outings, coaching exercises, mentors, or inspirational speeches. While these elements can be beneficial, their effects tend to fade over time. Instead, he pointed out that the key to building a strong team is external pressure.
Drawing an analogy, CZ suggested that if aliens were to visit Earth, the existing issues between countries like the US and China would vanish instantly, highlighting the unifying effect of external pressure. He also referenced the movie Blackhawk Down, where a soldier explains that the bond between soldiers is not about glory or heroism, but about the men next to them.
CZ clarified that he’s not advocating for life-threatening pressure, but he believes that facing challenges together is the best way to build tight teams. This approach fosters reliance, alliance, resilience, and most importantly, trust among team members.
This, according to the CEO of Binance, is one of the primary causes of the company’s strong team dynamics. FUD (Fear, Uncertainty, and Doubt) has kept the corporation in the trenches with one another since it has constantly faced external pressure.
CZ concluded his tweet by noting that while pressure creates tight teams internally, he is equally focused on collaboration and cooperation that builds trust externally. This insight into Binance’s team-building strategy provides a unique perspective on the company’s success and its approach to overcoming challenges.
Binance and CZ’s recent regulatory and legal pressures
This perspective is particularly relevant given the recent challenges Binance has faced.
On June 5, 2023, the Securities and Exchange Commission charged Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and CZ with a variety of securities law violations.
A month later, on July 5, Binance’s offices in Australia were searched by the country’s financial markets regulator.
The following day, Binance’s chief strategy officer Patrick Hillmann confirmed his departure from the crypto exchange, amid reports that other top compliance executives in the United States, including general counsel Han Ng and senior vice president for compliance Steven Christie, had also resigned.