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Crypto Twitter reacts to Binance CEO’s deleted tweet about Coinbase’s Bitcoin Holdings

ETHHERO November 23, 2022 4 min read


Coinbase was trending on Twitter on Nov. 22 after Binance CEO Changpeng Zhao, identified additionally as CZ, despatched out a tweet that appeared to query Coinbase’s Bitcoin holdings.

Within the since deleted tweet, CZ referenced a yahoo finance article that alleged that “Coinbase Custody holds 635,000 BTC on behalf of Grayscale.” CZ added, “four months in the past, Coinbase (I assume trade) has lower than 600Ok,” with a hyperlink to a four month previous article from Bitcoinist. The Binance CEO made it clear that he was merely quoting “information studies”, and never making any claims of his personal. Nevertheless, his tweet was not obtained effectively by the crypto group. 

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A screenshot of CZ’s since-deleted tweet.

Shortly after, Coinbase CEO Brian Armstrong not directly responded to CZ in a sequence of tweets, stating; “In case you see FUD on the market – keep in mind, our financials are public (we’re a public firm),“ with a hyperlink to Coinbase’s Q3 shareholder letter. He clarified that his firm holds “~2M BTC. ~$39.9B price as of 9/30 (see our 10Q).”

CZ deleted his tweet shortly afterward, stating: “Brian Armstrong simply advised me the numbers within the articles are improper. Deleted the earlier tweet. Let’s work collectively to enhance transparency within the business.”

Given latest market occasions, and Binance’s perceived function in instigating them, some have referred to as out CZ for the insinuations. To recap, FTX’S liquidation crunch, which led to an general spiral out there over the previous two weeks, is believed by many to have been initially triggered by the Binance CEO after his tweets triggered panic and a financial institution run on FTX.

Will Clemente, co-founder of digital asset analysis agency Reflexivity Analysis, shared on Twitter; “That newest tweet CZ made about Coinbase’s Bitcoin holdings that he simply deleted wasn’t an awesome look. I get the argument that he’s attempting to guard the business however CZ is greater than good sufficient to know that trade and custody wallets are separate.”

Mario Nawfal, Founder & CEO of IBCgroup.io, shared on Twitter: “Is CZ implying Coinbase custody does NOT maintain 1 to 1 BTC on behalf of Grayscale Belief???? See his newest tweet. This can be a concern I by no means had til now. This can be a VERY critical query (implied accusation?) to ask.”

Analyst, dealer, and investor @360_trader shared: “CZ simply proved immediately he’s all about one factor… his empire. He IS NOT right here to look out for the business … he deleted the tweet… However now … as I already anticipated … He’s uncovered himself as a villain.”

Dealer and investor @BobLoukas referred to as out CZ for his lack of due diligence earlier than tweeting. He shared: “CZ ‘Let’s work collectively to enhance transparency within the business.’ Additionally CZ – Let me tweet to tens of millions some random FUD in the course of a bear market main liquidity occasion earlier than possibly simply reaching out to verify.”

Related: Binance CEO denies report firm met with Abu Dhabi investors for crypto recovery fund

On Nov 18, Cryptocurrency funding product supplier Grayscale Investments shared that every one digital property that underlie Grayscale’s digital asset merchandise are saved below the custody of Coinbase Custody Belief Firm, LLC. Though the corporate has refused to supply on-chain proof of reserves or pockets addresses to indicate the underlying property, citing “safety issues.” On the time of publication, Coinbase $COIN token had skilled a $5.3% enhance in value.