On Nov. 22, Coinbase was trending on Twitter after Binance CEO Changpeng Zhao, known also as CZ, sent out a tweet that appeared to question Coinbase’s Bitcoin holdings. In his tweet, CZ implied that Coinbase has not been transparent after contrasting figures have been published about their Bitcoin holdings.

CZ’s tackles Coinbase on Twitter

Changpeng Zhao, better known as CZ, is the CEO of Binance, one of the world’s largest cryptocurrency exchanges. Recently, he caused quite a stir when he tweeted a link to a Yahoo Finance report claiming that Coinbase Custody holds 635,000 BTC on behalf of Grayscale. Also claimed that he believes coinbase held fewer than 600,000 Bitcoin four months ago as according to News outlet, Bitcoinist.

Needless to say, the Bitcoin community did not respond well to CZ’s post. Many individuals thought he was making bogus statements and were upset by his lack of candor. The CEO of Binance answered that he was only citing “news reports” and was not making any personal claims. However, the damage had already been done, and many people were left feeling frustrated and disappointed.

Not long after, Coinbase CEO Brian Armstrong gave an indirect response to CZ’s claims by tweeting “If you see FUD out there – remember, our financials are public (we’re a public company).” He then pointed to Coinbase’s Q3 shareholder letter which revealed they hold “~2M BTC. ~$39.9B worth as of 9/30 (see our 10Q).” In a nutshell, Armstrong was trying to say “Don’t believe the rumors – check out our finances for yourself!”

Crypto Twitter accuse CZ of spreading ‘FUD’ about  Coinbase

The past two weeks have been a wild ride for the cryptocurrency market. First, there was the FTX liquidation crunch, which led to a spiral in the market. Then, Binance CEO Changpeng Zhao was accused of causing the panic with his tweets. Now, some are calling out CZ for the insinuations.

But many believe that his tweets were purposely manipulative. So why would CZ do such a thing? Some say that he was trying to get rid of competition. Others say that he was simply trying to capitalize on the market conditions. Regardless of CZ’s motives, one thing is clear, his allegations were false.

Co-founder of Reflexivity Research, Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; “That latest tweet CZ made about Coinbase’s Bitcoin holdings that he just deleted wasn’t a great look. I get the argument that he’s trying to protect the industry but CZ is more than smart enough to know that exchange and custody wallets are separate.”

Analyst, trader, and investor @360_trader shared: “CZ just proved today he’s all about one thing… his empire. He IS NOT here to look out for the industry … he deleted the tweet… But now … as I already expected … He’s exposed himself as a villain.”

For any public figure, due diligence is essential before making any sort of statement – especially on social media. Unfortunately, it seems that not everyone understands this concept. Trader and investor @BobLoukas called out CZ for not getting his facts right before tweeting.

He shared: “CZ ‘Let’s work together to improve transparency in the industry.’ Also CZ – Let me tweet to millions some random FUD in the middle of a bear market major liquidity event before maybe just reaching out to confirm.”

Transparency is important in the Crypto Industry

Whether or not CZ’s actions were intentional, they shine a light on the power that influencers have in the cryptocurrency world. When someone with a large following speaks, people listen. And in this case, many believe CZ used his influence for malicious purposes.

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

https://twitter.com/cz_binance/status/1595126765143617536?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1595126765143617536%7Ctwgr%5E6cddf855c135e0f6509e737a185f38632d83b908%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcrypto-twitter-reacts-to-binance-ceo-s-deleted-tweet-about-coinbase-s-bitcoin-holdings

However, It’s refreshing to see the issue sorted quickly and in the open. The crypto industry has been shrouded in secrecy. Exchanges have been able to get away with listing fake trading volume numbers, and as a result, investors have been misled.

Transparency is essential for building trust in any industry, and it’s time for exchanges to start being more open about their business practices. Hopefully, CZ’s call for transparency will help to bring about change in the industry.