Changpeng “CZ” Zhao, the CEO of cryptocurrency exchange Binance, has posted on Twitter about the causes of the current fear, uncertainty, and doubt (FUD) surrounding the company.
CZ provided nine probable causes of the current FUD in a lengthy Twitter conversation on Saturday, all of which are outside forces.
First of all, according to CZ, some people only trash Binance because they dislike centralisation and controlled systems. They despise CEX, he continued, regardless of whether it accelerates the acceptance of cryptocurrencies.
Second, he said that some users would accuse the exchange if they lost money during trading or encountered external problems. Not every situation has clear-cut right and wrong answers.
The cryptocurrency millionaire also emphasised the growing opposition to the exchange and lobbying against it. He explicitly alluded to the fact that Sam Bankman-Fried, the disgraced founder of FTX, surreptitiously provided funding for the cryptocurrency publication The Block. Added him:
“As said before, certain media is paid to defame us. Some are “owned” in their whole by “competitors.” Regardless of how fraudulent their financing sources may have been, some people may mistakenly believe that we cut off their funding sources (we didn’t; they failed on their own) and blame us.”
According to CZ, the propagation of FUD in the market has also been aided by specific conventional media sources and conservative politicians attempting to safeguard traditional financial institutions from disruption by cryptocurrencies.
He did point out that existing financial institutions may defend themselves against disruption by the crypto business by lobbying against it. He asserted that allowing banks to adopt blockchain technology as soon as feasible is the best strategy to shield them from disruption.
Additionally, he stated that there exist “generalizations.” The crypto executive warned that if a user’s favourite or preferred platform turned out to be terrible, they would begin to despise all cryptocurrency exchanges.
Finally, CZ mentioned that given the magnitude of the platform, some people could talk about Binance to gain more hits. Size has advantages and disadvantages, he concluded.
“Most of those are not inherently right or incorrect, as mentioned above. Just how things are on our planet. All we have to do is acknowledge and comprehend it. We are not faultless. We appreciate criticism but reject false information. With your help, we put our efforts into creating our own items.”
Since the demise of FTX, investors have begun shifting their cryptocurrency holdings to self-custody and other exchanges in reaction to the FUD surrounding Binance. Billion-dollar withdrawals occurred over the previous several weeks due to many worries about the exchange’s reserves, liquidity, and continuing US investigations.
According to most crypto news websites, Binance also released a blog post in Chinese on December 22 that addressed seven important points the business wants to explain.
Quick Summary
External factors, not the exchange itself, are mostly to blame for Binance’s FUD.
CZ said that a small percentage of individuals are racist or merely envious of Canadians who appear Chinese.