Binance Founder Changpeng Zhao Tweets 9 Reasons Why People FUD

On December 24, the leading cryptocurrency exchange, Binance’s founder and CEO, Changpeng Zhao tweeted nine non-exhaustive reasons why people FUD about Binance. Investors and users have been encouraging FUD about Binance’s financial stability due to recent proof-of-reserves and withdrawals.

Why do people FUD about @Binance?

A few (non-exhaustive) reasons. Thread 1/98

— CZ ? Binance (@cz_binance) December 23, 2022

Zhao claims the FUD is because some people in the crypto industry “hate” centralization even if a CEX is helping with faster crypto adoption. However, he adds that everyone is entitled to their own opinion and their right to voice it.

Secondly, he holds traders who lose money on the platform responsible for the FUD. Zhao explains that if a user is unable to access Binance due to their own router while no one else faced a similar issue and Binance’s system monitoring demonstrates no queues, no overload on traffic, or no spike in CS cases, the user blames the exchange. He emphasizes,

Not all cases have black-and-white right-or-wrongs.

Zhao also says that industry players consider Binance as competition. The platform has witnessed users going to extraordinary lengths to lobby against the exchange, alongside loaning sums of money to small media that’s worth many times the media outlet’s market value, including buying their CEOs’ houses.

Moreover, certain media companies “owned” by competitors with illegitimate funding apparently get paid to FUD Binance. Additionally, media with comparatively larger traditional readers who are still skeptical about crypto will align with views of FUD.

Simultaneously, Zhao mentions that policy-makers and politicians are also conservative that would rather “protect” their banks than “disrupt” them with crypto.

The generalization of CEXs also contributes to the FUD. Most people hold one centralized exchange to the standard of others. Hence, when one fails, users develop a vengeance toward other CEXs. Last but not the least, Zhao holds racism accountable as one of the reasons behind the FUD. Alongside the fact that Binance is a popular platform that garners more views when journalists criticize them.

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