Binance’s CZ Tells Investors ‘Ignore Fud. Keep Building!’ as the Community Warns of Red Flags

Binance CEO tells the community to ‘Ignore FUD’ after they come under scrutiny following the proof-of-reserves announcement.

CZ telling investors to relax
  • Binance Coin ($BNB) is down 5.9% in the past seven days, with other top cryptocurrencies outperforming it.
  • Investors are concerned about ‘red flags’ following Binance’s proof-of-reserves announcement.

Compared to other top cryptocurrencies, Binance’s BNB is underperforming right now. Trading close to the $250 support level in the past seven days, BNB has somewhat recovered from its $262 seven-day low and is currently being traded at $274.17 as of writing. This contrasts with market leaders Bitcoin and Ethereum, which have had stronger seven-day performances.

Binance’s CZ has been vocal following the collapse of FTX, reassuring investors with a proof-of-reserves statement and what seems like daily situational updates via Twitter.

The Binance CEO urges investors to ignore FUD during a turbulent news cycle. Source: Twitter

The reassurance follows an article published by Reuters, which alleges that Binance is guilty of helping criminals launder over $10 billion in funds.

The crypto community is more cautious than ever

One Twitter user summarizes the recent ‘red flags’ regarding Binance. Source: Twitter

Other community members, however, point out that the ‘FUD’ is coming from biased sources as comparisons are drawn between the media treatment of CZ and SBF, respectively.

Binance’s proof-of-reserves have also come under scrutiny, with concerns around the proof-of-reserve verification system failing to account for liabilities and the numbers not vouching for anything.

Data analysis platform @Smartviewai summarises the red flags in Binance’s statement. Source: Twitter

Binance is under the media spotlight, and many community members are prompting others to remove their funds from the exchange. As always, not your keys – not your crypto.

On the Flipside

  • Binance has billions in assets under management, and withdrawals would have to increase significantly for Binance’s insolvency to have any legitimacy – the Mazars audit confirms Binance is ”101% collateralized,” so theoretically, they could handle full customer withdrawals.

Why You Should Care

Binance is the largest and now most trusted cryptocurrency exchange. Their recent reassurances are designed to put customer concerns at ease – but as always, it’s important to do your due diligence and pay attention to changes in the industry. As many investors know, things can rapidly take a turn for the worse so it is important to understand the risks to your funds if the worst-case scenario happens.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Zack Dadfar

Zack is a Crypto writer and trader, having been trading digital assets since 2017. Throughout time his portfolio and knowledge has grown, leading him down the writing path. With multiple project launches under his belt (NFTs and DeFi), and a degree in English Literature, Zack is excited to be combining his skills and passions to write for DailyCoin readers.