CZ Confronts ‘Imaginative FUD’ as Crypto Blame Game Intensifies
Changpeng ‘CZ’ Zhao, the influential co-founder of Binance, has taken to social media to vehemently dismiss what he labels as ‘imaginative FUD’ – fear, uncertainty, and doubt – aimed at himself and the exchange. His recent public statements come amidst a renewed wave of scrutiny and accusations linking Binance to recent crypto price declines and the lingering fallout from October’s flash crash.
Unpacking the ‘FUD’
In the volatile world of cryptocurrency, ‘FUD’ is a pervasive term used to describe the deliberate spread of false, misleading, or exaggerated information designed to sow panic and influence market sentiment. While often employed to discredit legitimate criticism, its current application, according to CZ, targets Binance with unfounded allegations.
On Monday, Zhao utilized the platform X (formerly Twitter) to directly address several key narratives circulating within the crypto community:
- The Bitcoin Dump Allegation: Speculation was rife that Binance had orchestrated a massive $1 billion Bitcoin dump, triggering a significant weekend sell-off that pushed prices below $75,000. CZ unequivocally denied these claims, stating, “Binance’s wallet balance only changes when users withdraw.” He emphasized that the funds in question belonged to users actively trading on the platform, not Binance itself.
- SAFU Fund Conversion Concerns: Questions arose regarding the slow implementation of Binance’s plan, announced last week, to convert its $1 billion Secure Asset Fund for Users (SAFU) from stablecoins to Bitcoin. Zhao clarified that this conversion is a strategic, 30-day process, likely executed in intervals to manage market impact. He highlighted Binance’s status as a Centralized Exchange (CEX) with unparalleled liquidity, making direct Decentralized Exchange (DEX) purchases unnecessary for such a large operation.
- The ‘Supercycle’ Sabotage Jab: Perhaps the most sarcastic accusation involved CZ being solely responsible for derailing the much-anticipated crypto ‘supercycle’ – a long-term bull market driven by widespread adoption. “If I had that power, I wouldn’t be on Crypto Twitter with you lot,” CZ quipped, attributing the confusion to an earlier comment where he expressed being “less confident” in the supercycle thesis. He humorously added, “I assume I would also have the power to snap it back then? I’d be snapping my fingers all day long.”
Lingering Shadows: The October Flash Crash
CZ’s forceful rebuttal arrives at a critical juncture, as segments of the crypto community continue to point fingers at Binance for the dramatic October 10 flash crash. This sudden market plunge liquidated approximately $19 billion in leveraged positions and left a significant, lasting impact on overall crypto market liquidity. Notably, Star Xu, founder of rival exchange OKX, has publicly implicated Binance in the event.
Despite stepping down as Binance CEO in 2023 following a $4.3 billion settlement with U.S. authorities and a four-month prison sentence, Changpeng Zhao remains an undeniably central and influential figure in the cryptocurrency landscape. His recent intervention underscores the ongoing sensitivity and the persistent blame game within the crypto ecosystem, especially when market volatility strikes.
For more details, visit our website.
Source: Link
Leave a comment