Changpeng Zhao, the CEO of the beleaguered crypto trading platform Binance shed light on the multiplying fallacies and false narratives on the current crypto market trend.
On June 10, the Binance CEO provided clarifications to several distorted facts that have been circulating over the past few days:
Why is the market is going up or down? No one really knows. A lot of people claim to know, and can often pin it on a single (often wrong) reason. In reality, there are many sellers and buyers in a market, everyone may have their own reasons. A few examples.
False narrative:… pic.twitter.com/LQDkEOK2as
— CZ 🔶 Binance (@cz_binance) June 10, 2023
Referring to the false narratives regarding the ongoing trends in the crypto space, especially following the SEC’s lawsuits, Zhao posited, “Greed and fear, the 2 emotions you [community] need[s] to manage in any markets”.
Citing the first fallacy, “Binance converted its holdings to fiat”, Zhao referred to the tweet of the Pool 2 reply guy Googly, which shared “something weird in Binance’s own Proof of Reserves”. Googly pointed out that the exchange cashed out fiat and moved a large amount of company reserves out of the exchange cold wallets.
Zhao asserted that the fiat currencies or the stablecoin reserves which were used to pay for short-term salaries or other similar expenses have decreased while the crypto reserves increased over the past few weeks and months.
Corroborating his ideas, Zhao added that “no one really knows” the actual reasons for the changing market trends. He quoted:
Why is the market going up or down? No one really knows. A lot of people claim to know, and can often pin it on a single (often wrong) reason. In reality, there are many sellers and buyers in a market, everyone may have their own reasons.
Further, Zhao responded to the crypto educator Bitcoin Expert India’s prediction that the market could collapse when the $1.3 billion worth of altcoins held by the financial services company Robinhood Markets is dumped in the next two weeks. While the crypto educating platform anticipated a higher sell pressure during the period, the Binance CEO commented that he has “no idea”.
