December 5, 2022

Binance CEO Rocks the Boat Again

Changpeng Zhao (CZ) Deleted Tweet Criticizing Coinbase Reserves Displeased Professionals crypto community because of its obvious destructiveness. Many remembered the head of Binance for his direct role in the collapse of FTX.

We recently talked about the risk of sellingGrayscale, the largest public crypto fund, is linked through the Digital Currency Group to crypto lender Genesis Trading. The investment stuck in FTX hit parent company DCG, which is now forced to consider selling its most liquid asset, Grayscale.
Binance CEO Rocks the Boat Again

Image source: arcane.no

In Bitcoin alone, Grayscale reserves are valued at643,572 coins (~$10.6 billion). On the one hand, the company tried to reassure investors by announcing the storage of cryptocurrency in Coinbase. On the other hand, it refused to publish the wallet address, citing security concerns. CZ took advantage of this, hinting at the absence of such amounts in Coinbase.
Binance CEO Rocks the Boat Again

Image source: cointelegraph.com

In a deleted tweet, CZ wrote that four morea month ago, Coinbase held less than 600k BTC, while for Grayscale, the crypto exchange must hold over 635k BTC. Thus, the head of Binance expressed doubts about both Grayscale's supply of coins and the impartiality of Coinbase. "Just a statement of news reports," CZ summed up.

Criticism of CZ was not long in coming,since it is obvious that Coinbase cannot merge data on deposits of crypto exchange clients and on custodial storage services into one “boiler”. What's more, as a publicly traded company in the United States, financial compliance is monitored by some of the world's most stringent financial regulators.

Coinbase CEO Brian Armstrong didn't get straightотвечать CZ, однако отметил, что все финансовые показатели компании находятся в открытом доступе, и по состоянию на 30 сентября на ее балансе числились 2 млн BTC. Он также призвал остерегаться ложной информации и попыток манипулирования.
Binance CEO Rocks the Boat Again

Image source: twitter.com /brian_armstrong

Social media users note that CZsmart enough not to know how things really are. Therefore, more and more judgments come down to the fact that the head of Binance acted as a “villain”, either to strengthen bearish sentiment or to increase market share. He was also cited as the trigger for the FTX collapse, as the panic began with CZ selling a $0.6 billion stock of FTT tokens in early November.
Binance CEO Rocks the Boat Again

Image Source: Cryptocurrency Exchange StormGain

Posting a message containing an unverifiedinformation with a clear negative connotation about a competitor, caused more damage to Changpeng Zhao himself. If he did it out of ignorance, then the question arises about the level of his competence.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)