December 5, 2022

Changpeng Zhao urged competitors to deliberately publish data on reserves of funds

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Changpeng Zhao urged competitors to deliberately publish data on reserves of funds

CEO of the largest crypto exchange in the worldBinance, alluding to situations related to the questionable data of the Crypto.Com and Huobi exchanges, said that it is necessary to give information that restores trust in trading platforms, and not vice versa.

Changpeng Zhao warned that if crypto companies want to regain the trust of the community, they need transparency about large transactions:

“If an exchange has to move large amounts of cryptocurrencies before or after showing their wallet addresses, this is a clear sign of problems. In that case, it's best not to publish your reserves."

The reaction of the businessman is due to the fact that someexchanges during the demonstration of reserve funds revealed suspicious transactions similar to market manipulation. In particular, the director of Crypto.Com, Kris Marszalek, had to
explain that his exchange accidentally sent over320,000 Ether ($400M) on Gate.Io and already got it back. The situation became known thanks to an anonymous analyst from Twitter, who studied information about the reserves of Crypto.Com and
indicated a suspicious transaction.

Now the crypto community suspects Huobi oftrying to manipulate the market. Shortly after the release of the reserves, a transaction of 10,000 Ether was made from the Huobi wallet address to the Binance and OKX deposit wallets. Analyst Colin Wu
noted that after Huobi posted its reserves of 14,858 Ether, their number had dropped to 2,464 Ether.

To counter the growing distrust amonginvestors amid the collapse of the FTX exchange, cryptocurrency trading platforms decided to share proof of their reserves with the public in order to demonstrate their liquidity.