Changpeng Zhao (CZ), CEO of Binance, the world’s largest cryptocurrency exchange, has been targeting some of its competitors in recent days. CZ has sown seeds of doubt on rival crypto exchange Coinbase and Digital Asset Manager Grayscale. However, it took a step back when Coinbase co-founder and CEO Brian Armstrong stepped in. Changpeng Zhao immediately deleted a tweet questioning the companies’ statements. So what exactly does CZ want to do?
CZ warns of crypto platforms, but…
Binance CEO Changpeng Zhao made statements to FTX, Cryptocom, Gemini, Genesis just this month. CZ was most recently involved in the controversy surrounding the Grayscale Bitcoin Trust (GBTC). Meanwhile, the statements made by the CEO of the world’s largest cryptocurrency exchange naturally harm the associated platforms and the market. Hence, the wars between crypto exchange giants have driven much of the chaos in the industry this month.
However, the latest salvo from Binance CEO seems to be wrong. On Tuesday, Binance CEO CZ dived into one of the market’s biggest concerns. There are suspicions among some observers that Grayscale, the operator of the largest Bitcoin trust, actually holds all the Bitcoins it says it holds. Grayscale, which is owned by the Digital Currency Group like CoinDesk, explained that these concerns are unfounded. Also, its partner Coinbase, the exchange holding Bitcoin, has backed Grayscale.
However, Zhao shared figures that, if true, would undermine Grayscale and Coinbase’s position. In his now-deleted tweet, “I’m just stating the ‘news’, I’m not making any claims.” he wrote. Coinbase CEO Brian Armstrong responded on Twitter shortly after. “If you see FUD out there, remember, our financials are public,” Armstrong said. Said. FUD is a crypto term for fear, uncertainty and doubt.
By the way, it is worth noting that Binance is also a private company that does not disclose financial information. Minutes after Armstrong’s statement, Zhao deleted his original tweet. Also, CZ said, “Brian Armstrong just told me the ‘numbers’ were wrong. Let’s work together to improve transparency in the industry,” he said.
What does Binance CEO want to do and where does he want to go?
Naturally, these experiences raise question marks in the minds. Shouldn’t a face at the head of a giant stock market like Binance act more cautiously? Shouldn’t he calculate the harm of sharing an unconfirmed data or information? Because the cryptocurrency market largely revolves around news and rumors.
CZ also played a central role in the collapse of crypto exchange giant FTX this month. After a November 2 report cast doubt on the financial stability of Sam Bankman-Fried’s crypto empire, Zhao announced that he has sold the FTX token mentioned in the news. This triggered a panic that drove FTX into bankruptcy. Thus, CZ ruled out an opponent. The subsequent scandal of FTX may justify CZ. However, it is not easy to make up for the loss of confidence in the market. Therefore, its own stock market is likely to suffer as a result of CZ’s actions. After all, Binance is an organization that lives in this market.
