- FUD continues to shadow Binance as observers take apart CZ’s comments in interviews.
- Amid this, supporters point out that Binance has been handling withdrawals proving that the FUD is misinformed.
Binance exchange continues to be the center of a lot of controversy and market FUD.
Market observers, including Genevieve Roch-Decter, have pointed out that Binance is exhibiting severe red flags. Roch-Decter, the CEO of financial media company GRIT, maintained that statements made by Binance CEO Changpeng Zhao do not inspire much confidence.
Also, CZ says they "actually forgot" about that $500 million for a while.
Is forgetting about half a billion dollars supposed to make me feel more confident in their ability to properly run an exchange?
— Genevieve Roch-Decter, CFA (@GRDecter) December 16, 2022
This was made known, alongside notations that Mazars suspended all work with Binance and other crypto clients. She further highlighted how CZ iterated that the big four accounting firms cannot audit the crypto industry, as they’re lacking in comprehension. This contradicts his statement that Binance is preparing to release audit reports, she added.
Analyst dispels all FUD about Binance as unfounded
Amid the market’s skepticism towards Binance, the exchange still has staunch supporters. B Da Viking, a pseudonymous core contributor to the memecoin project Floki Inu, shared his reasons for believing Binance is safe and solvent.
Writing in a Twitter thread to his over 54,000 followers, the developer tackled the critical facts about the four main Binance FUDs. These include the Mazers FUD, fears of a Binance bank run/insolvency, CZ’s recent statements in interviews, and FUD around BUSD.
On the first, the developer pointed out that Mazers did not specifically target Binance. The accounting firm ended its relationship with KuCoin and Crypto.com. This might have been because it considers the crypto industry too risky to associate with.
Tackling claims of insolvency, the thread highlighted that Binance has been handling withdrawals seamlessly. The platform has processed over $14 billion worth of withdrawals in the past week. The exchange also has over $55 billion worth of assets in its reserve which can be verified on-chain.
The thread adds that CZ’s comments on CNBC are being misinterpreted. CZ’s commented that Binance’s lawyers can handle any attempt by FTX to clawback the $2.1 billion the exchange cashed out when it exited its FTX position.
Meanwhile, it adds that fears around BUSD likely unpegging and drawing Binance down with it are unfounded. B Da Viking denoted that BUSD is not issued by Binance, but by Paxos. The stablecoin is also highly regulated in the U.S. of all places.
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“As you can see from the facts in this thread, attempts to FUD Binance are misinformed, show a clear lack of understanding, or are intentionally aimed at stirring panic and hate of Binance based on unfounded claims. They are attacks against crypto, plain and simple!” he surmised.
Meanwhile, the FTX situation continues to worsen. Armanino, the auditing firm used by FTX.Us and Nexo, has announced that it is ending its ties with crypto clients according to a Forbes report.
