Many analysts concede it: the fall of FTX results in particular from the rivalries between the big names in the crypto market. We are obviously referring to Binance. Even today, its CEO, Changpeng Zhao (alias CZ), seems to want to set the stage again by attacking one of its competitors. The latter posted a tweet that quickly shook the crypto community.
This crypto business in a nutshell
It all started when Changpeng Zhao bounced off an article appeared on Yahoo Finance. The outline of this publication: “Coinbase holds 635,000 BTC on behalf of Grayscale”. According to Binance CEO, Coinbase had less than 600,000 BTC 4 months ago. Of course, 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 tweet, it even adds the link to Coinbase’s Q3 shareholder letter. To further embed Binance CEO, Brian Armstrong states that Coinbase holds around 2M BTC.
Transparency or bad faith?
The opinions of the crypto community remain extremely divided on Changpeng Zhao’s “problematic” tweet. Some applaud his increased willingness to protect the cryptocurrency industry. Others (not to say the majority) point to his approach. This is notably the case of Will Clemente, co-founder of Reflexivity Research.
In his tweet, he says, “I understand the argument that he is trying to protect the industry, but CZ is more than smart enough to know that the exchange and custodial wallets are separate. An opinion supported by Bob Loukas, a crypto investor, via another tweet.
As the crypto market tries to curry favor with the general public and the relevant authorities, the conflicts and scandals that have arisen lately do not make the task any easier. We will at least have learned two things from this little squabble between Binance and Coinbase. The first: always rely on reliable sources. The second: crypto remains a very volatile market.
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