Home CryptocurrencyAltcoin Crypto Twitter Responds to Binance CEO’s Deleted Tweet About Coinbase’s Bitcoin Holdings

Crypto Twitter Responds to Binance CEO’s Deleted Tweet About Coinbase’s Bitcoin Holdings

by SuperiorInvest

Coinbase trended on Twitter on November 22 after Binance CEO Changpeng Zhao, also known as CZ, sent out a tweet that appeared to question Coinbase’s holdings of Bitcoin.

In a since-deleted tweet, CZ referenced a Yahoo Finance article that claimed “Coinbase Custody holds 635,000 BTC on behalf of Grayscale.” CZ added: “4 months ago Coinbase (I assume the exchange) has less than 600k,” referring to a 4 month old article from Bitcoinist. Binance’s CEO made it clear that he was only citing “news reports” and not making any claims of his own. However, his tweet was not received well by the crypto community.

Screenshot from CZ’s deleted tweet.

Shortly after, Coinbase CEO Brian Armstrong indirectly responded to CZ in a series of tweets where he stated; “If you’re seeing FUD out there – remember our finances are public (we’re a public company),” referring to Coinbase’s Q3 shareholder letter. He clarified that his company owns “~2M BTC. Value ~$39.9 billion as of September 30 (see our Q10).

CZ deleted his tweet shortly after, saying: “Brian Armstrong just told me the numbers in the articles are wrong. Deleted previous tweet. Let’s work together to improve transparency in this industry.”

Given recent market events and Binance’s perceived role in fueling them, some have called CZ for hints. To recap, the FTX liquidation crisis that led to the overall market spiral over the past two weeks is believed by many to have been initially triggered by Binance’s CEO after his tweets sparked panic and a bank run on FTX.

Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; “CZ’s latest tweet about Coinbase’s bitcoin holdings, which he just deleted, didn’t look great. I understand the argument that they are trying to protect the industry, but CZ is more than smart enough to know that exchange and escrow wallets are separate.”

Mario Nawfal, founder and CEO of IBCgroup.io, shared on Twitter: “Is CZ implying that Coinbase escrow DOES NOT HOLD 1 to 1 BTC on behalf of Greyscale Trust???? Check out his latest tweet. That’s a concern I’ve never had before. This is a VERY serious question (implied accusation?) to ask.”

Analyst, trader and investor @360_trader shared: “CZ just proved today that it only cares about one thing… its empire. He is NOT here to look out for the industry… he deleted the tweet… But now… as I expected… he has revealed himself as a villain.’

Trader and investor @BobLoukas called out CZ for lack of due diligence before tweeting. He shared: “CZ ‘Let’s work together to improve transparency in the industry.’ Also CZ – Let me tweet some random FUD to millions in the middle of a major bear market liquidity event before maybe just reaching out for confirmation.”

Related: Binance CEO Denies Report Firm Met with Abu Dhabi Investors for Crypto Recovery Fund

On November 18, a cryptocurrency investment product provider Grayscale investment shared that all digital assets underlying Grayscale’s digital asset products are held under the custody of Coinbase Custody Trust Company, LLC. Although the company declined to provide direct proof of reserves or wallet addresses to show the underlying assets, citing “security concerns.” At the time of publication, the Coinbase $COIN token has seen a $5.3% increase in price.

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