CZ Addresses Reasons for Binance’s Recent FUD

Binance CEO Changpeng “CZ” Zhao took to Twitter on December 23 to to share his take on the reasons behind the recent Fear, Uncertainty, and Doubt (FUD) surrounding the crypto exchange.

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 crypto adoption at a faster rate, they just hate CEX,” he noted.

CZ also pointed out that Binance was seen as competition by many industry players, with increasing lobbying against the exchange and “lending sums of money to small media that are worth many times the market value of the media, including including buying their CEOs’ homes, etc.” , referring to The Block CEO Mike McCaffrey, who secretly funded the crypto news platform with loans from Alameda Research.

McCaffrey resigned as CEO on Dec. 9 after disclosing two loans totaling $27 million from hedge funds FTX Group.

Related: Binance Joins Lobby Group As Exchange Criticism Intensifies

CZ repeatedly cited media coverage as the cause of FUD, accusing some of being “paid” to produce it – without providing any evidence.

In addition, the executive noted that conservative politicians working to protect traditional financial institutions from crypto disruption are also spreading misinformation. CZ said that “being conservative is not wrong,” but banks should embrace blockchain technology rather than fight disruption.

Finally, CZ also claimed that there may be a “small number of people who are jealous or just plain racist against Chinese-looking Canadians” contributing to the spread of FUD against the exchange.

Investors have moved their crypto assets to self-custody and other exchanges in response to the FUD surrounding Binance since the fall of FTX. A number of concerns about the exchange’s liquidity, its reserves and ongoing investigations in the United States have resulted in billions being outflowed in recent weeks.

On December 22, Binance also published a blog post in Chinese addressing seven key issues the company intended to clarify, Cointelegraph reported.