Binance’s FUD is mostly caused by external factors – not the exchange itself, according to CZ.
Binance CEO Changpeng “CZ” Zhao took to Twitter on December 23 to share his views on the reasons behind the recent fears, uncertainties, and doubts (FUD) surrounding crypto exchanges.
According to CZ in the thread, Binance’s FUD is mostly caused by external factors – not the exchange itself.
One of the reasons given by the CEO was that part of the crypto community hates centralization. “It doesn’t matter if a CEX helps accelerate crypto adoption, they just hate CEX,” he noted.
CZ also pointed out that Binance is seen as a competitor by many industry players, who are increasingly anti-exchange and “lend money to small media outlets worth many times the market value of the media company, including the buying houses of their CEOs, etc.” Referring to The Block CEO Mike McCaffrey who secretly funded the crypto news platform with loans from Alameda Research.
McCaffrey stepped down as CEO on Dec. 9 after disclosing two loans totaling $27 million from the hedge fund side of FTX Group.
Related: Binance Joins Lobby As Exchange Criticism Mounts
CZ repeatedly cited media coverage as the cause of FUD and accused some of being “paid” to produce it – without providing evidence.
Additionally, the executive noted that conservative politicians working to protect traditional financial institutions from crypto disruption are also spreading misinformation. CZ said that “there is nothing wrong with being conservative,” but banks should embrace blockchain technology instead of fighting disruption.
Finally, CZ also claimed that there may be a “small number of people who are jealous or just plain racist towards Chinese-looking Canadians” who are contributing to the spread of anti-stock market FUD.
Investors have moved their crypto assets to self-custody and other exchanges in response to the FUD surrounding Binance since FTX’s demise. A series of worries about the exchange’s liquidity, its reserves and ongoing investigations in the United States have led to billions of dollars outflows in recent weeks.
On December 22, Binance also published a blog post in Chinese that addressed seven key questions the company wanted to clarify, Cointelegraph reported.
