Binance, the world’s leading cryptocurrency exchange by trading volume, and the largest blockchain ecosystem have lately been attacked by several individuals and entities via the spreading of fear, uncertainty, and disorder (FUD) around the digital assets marketplace.
This FUD surrounding Binance and centralized exchanges, in general, began after the implosion of the then-second-largest crypto exchange FTX, which was founded by Sam Bankman-Fried. More so, the FUD got intense when the leading audit firm Mazars, temporarily ceased partnership with all its crypto clients including Binance, Crypto.Com, and KuCoin.
The corresponding removal of Binance’s proof of reserve audit from auditor Mazar’s website around mid-December, the huge outflows from the exchange this month, and CZ’s $2.1 billion FTT statement on CNBC led to rumors of a Binance “bank run”/ insolvency. It’s worth noting that on November 6, CZ wrote, “as part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion equivalent in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books.”
However, on-chain data on Defilama show that Binance has a reserve of $55.16 billion at press time and this is verifiable on the blockchain. Reacting to the FUD regarding the billions of funds sent out of the exchange this month, CZ noted that it was business as usual adding that the exchange has processed even more volume several times.
Read Also: Kevin O’Leary Blames CZ Binance for FTX Collapse, Ripple CTO and John Deaton Reacts
Binance CEO Reacts to the Growing FUD
To further address the issues, Binance founder Changpeng Zhao took to Twitter before Christmas day to share a few (non-exhaustive) reasons regarding why people FUD on the popular centralized exchange. He wrote:
- Some in our industry hate centralization. Regardless if a CEX helps with crypto adoption at a faster rate, they just hate CEX. Everyone is allowed to hold their views and voice their opinions. Nothing wrong with that.
- Some lose money on trading or experience other issues and may blame and attack us. Not all cases have black-and-white right-or-wrongs.
- Some industry players view Binance as competition. We have seen some go to extraordinary lengths to lobby against us, or loaning sums of money to small media that are worth many times the media outlet’s market value, including buying their CEOs houses, etc
- some media gets paid to FUD us. Some are entirely “owned” by a “competitor”. Some may wrongly think that we cut off their funding sources (we didn’t, they failed on their own), and blame us, regardless of how illegitimate their funding sources may have been.
- Crypto has not reached mass adoption yet, probably less than 5% globally. Many people are still skeptical about crypto. Some media have readerships that are more traditional and will tend to align with their views. Nothing wrong with that.
- The same goes for politicians, policy-makers, etc. Not all of them are cutting-edge progressive. Being conservative is not wrong. I have met leaders who want to “protect” their banks instead of “disrupting” them with crypto. I personally hold the opposite view, of course. I think the best way to protect banks from disruption is to let them adopt blockchain technologies as early as possible. Again, I could be wrong here.
- And then there are generalizations. “If one CEX is bad, then all other CEXs must be bad too.” Especially if they liked a CEX before, who later turned out to be bad. Then, they must hate the other CEXs with a stronger vengeance.
- There may be a tiny number of people who are jealous, or just plain racist against Chinese-looking Canadians. Who knows? We don’t care
- Size. Writing about “Binance” gets you more clicks. If you write about a small exchange, you get less clicks. Size has pros and cons.
Read Also: CZ Binance States One Catalyst to Boost Global Adoption of Crypto
Summarily, CZ stated that Binance remains focused on building despite the prevailing side talks, beckoning all players in the blockchain industry to ignore FUD. “Most of the above have no absolute right or wrongs. It’s just how our world is. We only need to recognize and understand it. We are not perfect. We welcome feedback but ignore FUD. We focus on building our products with your support,” he added.
Most of the above have no absolute right or wrongs. It’s just how our world is. We only need to recognize and understand it.
We are not perfect. We welcome feedback, but ignore FUD. We focus on building our own products with your support. 🙏🙏🙏
Merry Christmas!🎄
— CZ 🔶 Binance (@cz_binance) December 23, 2022
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