Many analysts admit it: the fall of FTX derives in particular from the rivalries between the big names in the cryptocurrency market. We are obviously referring to Binance. Even today, its CEO, Changpeng Zhao (alias CZ), seems to want to put the situation back on its feet by attacking one of its competitors. The latter posted a tweet that quickly shook up the crypto community.
This cryptocurrency business in a nutshell
It all started when Changpeng Zhao rebounded an article appeared on Yahoo Finance. The outline of this publication: “Coinbase holds 635,000 BTC on behalf of Grayscale”. According to CEO of Binance, Coinbase had less than 600,000 BTC 4 months earlier. Naturally, he added that he was only quoting simple articles.
In response to this tweet (which Changpeng Zhao was quick to delete), Brian Armstrong clarified that Coinbase’s finances are all public. On his tweets, even adds the link to Coinbase’s Q3 shareholder letter. To further embed Binance CEO Brian Armstrong says that Coinbase holds around 2 million BTC.
Transparency or bad faith?
Opinions in the crypto community remain extremely divided on Changpeng Zhao’s “problematic” tweet. Some applaud his greater willingness to protect the cryptocurrency industry. Others (not to mention the majority) emphasize his approach. This is especially the case for Will Clemente, co-founder of Reflexivity Research.
In his tweetshe says, “I understand the argument that he is trying to protect the sector, but CZ is more than smart enough to know that the trading and custody wallets are separate. An opinion supported by Bob Loukas, a cryptocurrency investor, via another tweets.
As the cryptocurrency market tries to curry favor with the general public and relevant authorities, recent controversies and scandals do little to help the task. We will have learned at least two things from this little spat between Binance and Coinbase. The first: always rely on reliable sources. The second: cryptocurrencies remain a very volatile market.
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My name is Ariela and I’m 31 years old. I have been working in the field of web writing for the past 7 years. I only discovered trading and cryptocurrencies a few years ago. But it is a universe that interests me very much. And the topics covered within the platform allow me to learn more. A singer in my free time, I also cultivate a great passion for music and reading (and animals!