Binance CEO Changpeng "CZ" Zhao took to Twitter on Dec. 23 to Share his perspective on the reasons behind the recent fear, uncertainty, and doubt (FUD) surrounding the cryptocurrency exchange.
According to CZ in the thread, Binance's FUD is mainly caused by external factors, not the exchange itself.
One of the reasons mentioned by the CEO was that part of the crypto community hates centralization. โRegardless of whether a CEX helps with crypto adoption at a faster rate, they just hate CEX,โ he noted.
CZ also noted that many industry players have seen Binance as competition, with increasing lobbying against the exchange and โlending sums of money to small media that are worth many times the market value of the media, including buying the homes of their CEOs, etc." , referring to The Block CEO, Mike McCaffreywho secretly financed the crypto news platform with loans from Alameda Research.
McCaffrey resigned as chief executive on December 9, after disclosing two loans totaling $27 million from the FTX Group hedge fund.
Related: Binance Joins Lobbying Group as Criticism of Exchange Mounts
CZ repeatedly cited media coverage as the cause of FUD, accusing some of being "paid" to produce it, without providing any evidence.
4/ According to the above, some media are paid for FUD. Some are wholly "owned" by a "competitor." Some may mistakenly think that we cut off their funding sources (we didn't, they failed on their own) and blame us, regardless of how illegitimate their funding sources may have been.
โCZ Binance (@cz_binance) December 23, 2022
In addition, the executive noted that conservative politicians working to protect traditional financial institutions from crypto corruption were also spreading misinformation. CZ stated that โbeing conservative is not badโ, 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 against Canadians who look like Chinese" contributing to the spread of anti-exchange FUD.
Investors have been move your crypto assets to self-custody and other exchanges in response to the FUD surrounding Binance since the FTX crash. A series of concerns regarding the exchange's liquidity, its reserves, and ongoing investigations in the United States have resulted in billions in outflows in recent weeks.
On Dec. 22, Binance also published a blog post in Chinese address seven key issues the company intended to clarify, Cointelegraph reported.
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