CZ Addresses Allegations Amid Ongoing Crypto Price Decline
- Changpeng Zhao, co-founder of Binance, dismissed recent allegations as “imaginative FUD,” referring to the spread of false information.
- He refuted claims that Binance sold $1 billion in BTC to instigate a market selloff below $75,000, clarifying that funds belonged to users.
- Zhao stated that Binance’s wallet balance only changes with user withdrawals, emphasizing that most users retain their funds on the platform.
- He defended the gradual conversion of Binance’s Secure Asset Fund for Users (SAFU) from stablecoins to BTC over a planned period of thirty days.
- The crypto community is scrutinizing Binance following an October flash crash that eliminated approximately $19 billion in leveraged positions.
Zhao’s comments come amid ongoing blame directed at Binance for recent market volatility, particularly after the significant loss in leveraged positions during the October crash. His defense highlights user reliance on the exchange and aims to clarify misconceptions about its operations.
With Zhao asserting that he does not control market dynamics, he noted his lack of confidence in the crypto supercycle narrative, which has been a topic of discussion among investors recently. (Source)
