CZ Drops Bombshell: YZi Labs Remains Closed to External Investors - Here’s Why It Matters

Binance's CEO just drew a hard line in the sand - and the crypto world is paying attention.

Strategic Isolation

YZi Labs isn't taking outside money. Period. CZ's declaration signals a fortress mentality at a time when other projects scramble for funding. The move defies conventional startup wisdom while showcasing Binance's financial muscle.

Built Different

This isn't about keeping investors out - it's about maintaining absolute control over development timelines and product vision. No quarterly reports to anxious VCs. No pressure to pivot for short-term gains. Just pure, unfiltered innovation.

Market Implications

When the world's largest crypto exchange funds its labs internally, it speaks volumes about both confidence and capability. Traditional finance types might call it reckless - we call it putting skin in the game without the baggage of boardroom politics.

The closed-door approach could actually accelerate breakthroughs while Wall Street still figures out how to pronounce 'blockchain.' Sometimes the best investments are the ones you can't make.

YZi Labs is not raising money from investors, Binance co-founder Changpeng Zhao (CZ) says. In an X post on Tuesday, CZ has accused media outlet FT of a misleading article that YZi Labs, formally Binance Labs, is opening up for external investors.

“YZiLabs is not raising external funds. There is no demo. WTF is a demo for a fund? There is no pitch deck for YZiLabs ever. Not even preparation of one,” CZ noted. 

Is Binance’s YZi Labs Under Conflict?

According to the FT article, Ella Zhang, the managing partner and head of YZi Labs, admitted to a strong interest from investors. The media outlet highlighted that Zhang has received a ‘private demo’ request from Paul Atkins, Chairman of the United States Securities and Exchange Commission (SEC). 

“YZiLabs, since rebranding, has not sought a single external investor. No requests, no discussions. There has been no demo, no communications with Chairman Paul Atkins from YZiLabs or me,” CZ added.

CZ accused the media outlet of an attempted trap through a failed interview, which was conducted with Zhang. 

Commitment to Web3 Development 

Binance CZ has reiterated several times that YZi Labs is committed to the long-term growth of cryptocurrency and blockchain technology. For instance, YZi Labs announced the launch of the EASY Residency initiative earlier this year to focus on supporting builders in web3, AI, and biotech spaces.

The projects supported by YZi Labs have a higher chance of getting their tokens listed on the Binance exchange. According to market data from CoinMarketCap, the YZi Labs’ portfolio tokens have a net valuation of about $2.7 trillion led by Bitcoin, Ethereum, Ethena, Sui, Injective, 1inch, Kava, and LayerZero.

As such, it is SAFE to say that YZi Labs collaborates with public investors through its supported tokens that are listed on the Binance exchange.