Binance, the world’s largest crypto exchange, is facing a slew of public accusations instilling “fear, uncertainty, and doubt” among its users prompting its CEO to address the “FUD.” in Twitter.
FUD helps us grow, even though they are thoroughly annoying.— CZ 🔶 Binance (@cz_binance) December 13, 2022
You can FUD about someone without explicitly mentioning their name, which spreads awareness.
It also helps unite their supporters because it forms a common defense alliance.
Short thread. 1/4 https://t.co/PlxhqV5cZS
Bitcoin withdrawals from Binance, the largest cryptocurrency exchange, has surpassed $500 million in the last 24 hours. According to data from the on-chain monitoring service Coinglass, Binance’s BTC balance has decreased by over 30,000 BTC as of December 13.
However, Binance CEO Changpeng Zhao (CZ) took to Twitter and noted that even though thoroughly annoying, FUD helps them grow. “You can FUD about someone without explicitly mentioning their name, which spreads awareness. It also helps unite their supporters because it forms a common defence alliance.” Zhao noted in his Dec 13 tweet.
In recent weeks, the company has made headlines for payout issues, dwindling reserves, US Attorney’s Office investigations into money laundering and sanctions violations, and proof of reserves.
Zhao thinks that Since Binance has been facing FUD from the beginning, they learned the ability to ignore them and keep building. He also thanked users for their support over the years.
From day 1 of the Binance ICO (5 years ago), there were FUD sponsored by a large exchange then (now very small). Articles from “Why Binance ICO will fail” to “CZ can’t write code” showed up magically. We were a new startup, not able to reach all the media outlets. This “competitor” helped us to get the word out. I had many inquiries like: “hey, just read about you, the article is negative, but it’s obviously an attack, so I want to invest in you.the tweet reads.
It all started when Reuters reported that the exchange would be the subject of a money laundering lawsuit in the United States.
Zhao denied this, sharing a Binance statement that refuted the report’s claims.
However, reports of large token withdrawals by Justin Sun, the CEO and founder of TRON, heightened tensions.
On December 11, CZ explained the recent account stalls and abnormal price movements in a Tweet thread.
Based on our investigations so far, this appears to be just market behavior. One guy deposited funds and started buying. (Hackers don’t deposit). Other guys followed. Can’t see linkage between the accounts. 1/3 https://t.co/QlB1VnlHVs— CZ 🔶 Binance (@cz_binance) December 11, 2022
He also stated that the “abnormal” trading of altcoins on the platform appears to be market behaviour following the company’s disclosure that the activity had nothing to do with compromised accounts or leaked API keys.