Coinbase trended on Twitter on Nov. 22 after Binance CEO Changpeng Zhao, also known as CZ, sent out a tweet questioning Coinbase’s holdings of Bitcoin.
In a since-deleted tweet, CZ referenced a Yahoo Finance article claiming that “Coinbase Custody holds 635,000 BTC on behalf of Grayscale.” CZ added, “Four months ago, Coinbase (I think the exchange) was under 600K for him,” with a link to his four-month-old article on Bitcoinist. His CEO of Binance clarified that he was simply citing a “news report” and that he was not making any claims of his own.
Shortly after, Coinbase CEO Brian Armstrong indirectly replied to CZ in a series of tweets stating: “If you see FUD, remember: our finances are public (we are a public company),” with a link to Coinbase’s third quarter shareholder letter. . He said that his company was “~2 million BTC. As of 9/30 he was worth $39.9 billion (see Q10).
If you see FUD, keep that in mind. Our finances are public (we are a public company). https://t.co/ayzN0zaqgT
— Brian Armstrong (@brian_armstrong) November 22, 2022
CZ deleted the tweet shortly afterward, stating: Deleted previous tweet. Let’s work together to improve transparency in the industry. ”
Brian Armstrong said the numbers in the article are wrong. Deleted previous tweet. Let’s work together to increase transparency in the industry.
— CZ Binance (@cz_binance) November 22, 2022
Given recent market events and Binance’s perceived role in instigating them, some have alludedly called out CZ. tweet sparked the panic, many believe was first triggered by the Binance CEO after the bank crackdown on FTX.
Will Clemente, co-founder of digital asset research firm Reflexivity Research, said on Twitter: “The latest tweet CZ made about Coinbase’s Bitcoin holdings, which he just deleted, didn’t look good. You’re smart enough to know you’re separated.”
CZ’s latest tweet about Coinbase’s just-deleted bitcoin holdings didn’t look good. I get the argument that he is trying to protect the industry, but CZ is smart enough to know that exchanges and custody wallets are separate.
— Will Clemente (@WClementeIII) November 22, 2022
IBCgroup.io Founder and CEO Mario Nawfal said on Twitter: See his latest tweet. This is a concern I never had before. This is a very serious question (implicit accusation?).
Does CZ imply that Coinbase’s custody does not hold BTC 1:1 on behalf of Grayscale Trust????
See his latest tweet. This is a concern I never had before.
This is a very serious question (implicit accusation?).
I will discuss this on the show and add points below
— Mario Nawfal (@MarioNawfal) November 22, 2022
Analyst, trader and investor @360_trader said: He’s not here to keep tabs on the industry…he deleted the tweet…but now…as I already expected…he’s exposed himself as a villain.
CZ proved today that he’s all about one thing: his empire.
He’s not here to monitor the industry…he deleted the tweet…
But now… as expected…
He exposed himself as a villain.
— 360 Trader (@360_trader) November 22, 2022
Trader and investor @BobLoukas accused CZ of failing to do due diligence before tweeting. he said: Also, CZ – tweet millions of random FUDs during major liquidity events in the bear market, then reach out for confirmation. “
CZ “Let’s work together to increase transparency in the industry.”
Also, CZ – tweet millions of random FUDs during major liquidity events in the bear market, then reach out for confirmation. https://t.co/UA00hieJsC
— Bob Lucas (@BobLoukas) November 22, 2022
Nov. 18, Cryptocurrency investment product provider grayscale investment You 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 has refused to provide proof of on-chain reserves or wallet addresses to indicate the underlying assets, citing “security concerns”. Prices were up 5.3%.