Binance CEO Explains the Reasons for Recent FUD

On December 23, Binance CEO Changpeng “CZ” Zhao took to Twitter to discuss the causes for the recent fear, uncertainty, and doubt (FUD) regarding his crypto exchange.

As per CZ in the thread, Binance’s FUD is mostly the result of outside causes, not the exchange itself.

One of the reasons given by the CEO was that some members of the cryptocurrency ecosystem despise centralization. He states: 

“Regardless if a CEX helps with crypto adoption at a faster rate, they just hate CEX.”

CZ further noted that Binance has been deemed as a competitor by many industry participants, with rising conspiracy against the exchange and “loaning sums of money to small media that’s worth many times the media outlet’s market value, including buying their CEOs houses, etc,” bringing attention to The Block’s CEO, Mike McCaffrey, who quietly funded the crypto news platform with financing from Alameda Research. 

McCaffrey resigned as CEO on December 9 after revealing two loans worth $27 million from FTX Group’s hedge fund.

CZ consistently blamed media coverage for FUD, claiming some of it being “paid” to fabricate it despite giving no evidence.

The executive also pointed out that conservative lawmakers attempting to defend existing banking institutions from bitcoin disruption were circulating lies. 

“Being conservative is not wrong,” CZ said, but financial institutions should accept blockchain technology rather than resisting advancement.

Finally, CZ asserted that a “tiny number of people who are jealous, or just plain racist against Chinese-looking Canadians,” may be spreading FUD about the trade.

Binance in Trouble Post FTX Implosion

Binance also released a blog content in Chinese on December 22 that addressed seven critical topics that the business wanted to clarify, according to Cointelegraph.

Notably, an increasing number of people have called for stronger regulation of the cryptocurrency sector, with a focus on Binance in particular, after the collapse of the FTX.

The exchange’s proof of reserves got called into doubt, and withdrawals increased as a result of a slew of bad media articles about CZ’s company.