Coinbase was trending on Twitter on Nov. 22 after Binance CEO Changpeng Zhao, known also as CZ, sent out a tweet that appeared to question Coinbase\u2019s Bitcoin holdings.<\/p>\n
In the since deleted tweet, CZ referenced a yahoo finance article that alleged that \u201cCoinbase Custody holds 635,000 BTC on behalf of Grayscale.\u201d CZ added, \u201c4 months ago, Coinbase (I assume exchange) has less than 600K,\u201d with a link to a 4 month old article from Bitcoinist. The Binance CEO made it clear that he was simply quoting \u201cnews reports”, and not making any claims of his own. However, his tweet was not received well by the crypto community.\u00a0<\/p>\n Shortly after, Coinbase CEO Brian Armstrong indirectly responded to CZ in a series of tweets, stating; \u201cIf you see FUD out there – remember, our financials are public (we’re a public company),\u201c with a link to Coinbase\u2019s Q3 shareholder letter. He clarified that his company holds \u201c~2M BTC. ~$39.9B worth as of 9\/30 (see our 10Q).\u201d<\/p>\n If you see FUD out there – remember, our financials are public (we’re a public company) https:\/\/t.co\/ayzN0zaqgT<\/a><\/p>\n \u2014 Brian Armstrong (@brian_armstrong) November 22, 2022<\/a><\/p><\/blockquote>\n CZ deleted his tweet shortly afterward, stating: \u201cBrian Armstrong just told me the numbers in the articles are wrong. Deleted the previous tweet. Let\u2019s work together to improve transparency in the industry.\u201d<\/p>\n Brian Armstrong just told me the numbers in the articles are wrong. Deleted the previous tweet. Let\u2019s work together to improve transparency in the industry.<\/p>\n \u2014 CZ Binance (@cz_binance) November 22, 2022<\/a><\/p><\/blockquote>\n Given recent market events, and Binance’s perceived role in instigating them, some have called out CZ for the insinuations. To recap, FTX\u2019S liquidation crunch, which led to an overall spiral in the market over the past two weeks, is believed by many to have been initially triggered by the Binance CEO after his tweets caused panic and a bank run on FTX.<\/p>\n Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; \u201cThat latest tweet CZ made about Coinbase\u2019s Bitcoin holdings that he just deleted wasn\u2019t a great look. I get the argument that he\u2019s trying to protect the industry but CZ is more than smart enough to know that exchange and custody wallets are separate.\u201d<\/p>\n That latest tweet CZ made about Coinbase\u2019s Bitcoin holdings that he just deleted wasn\u2019t a great look. I get the argument that he\u2019s trying to protect the industry but CZ is more than smart enough to know that exchange and custody wallets are separate.<\/p>\n \u2014 Will Clemente (@WClementeIII) November 22, 2022<\/a><\/p><\/blockquote>\n Mario Nawfal, Founder & CEO of IBCgroup.io, shared on Twitter: \u201cIs CZ implying Coinbase custody does NOT hold 1 to 1 BTC on behalf of Grayscale Trust???? See his latest tweet. This is a concern I never had til now. This is a VERY serious question (implied accusation?) to ask.\u201d<\/p>\n Is CZ implying Coinbase custody does NOT hold 1 to 1 BTC on behalf of Grayscale Trust????<\/p>\n See his latest tweet. This is a concern I never had til now.<\/p>\n This is a VERY serious question (implied accusation?) to ask.<\/p>\n Will discuss this on the show and add points below <\/p>\n \u2014 Mario Nawfal (@MarioNawfal) November 22, 2022<\/a><\/p><\/blockquote>\n Analyst, trader, and investor @360_trader shared: \u201cCZ just proved today he\u2019s all about one thing\u2026 his empire. He IS NOT here to look out for the industry \u2026 he deleted the tweet\u2026 But now \u2026 as I already expected \u2026 He\u2019s exposed himself as a villain.\u201d<\/p>\n CZ just proved today he\u2019s all about one thing\u2026 his empire. <\/p>\n He IS NOT here to look out for the industry \u2026 he deleted the tweet\u2026 <\/p>\n But now \u2026 as I already expected \u2026 <\/p>\n He\u2019s exposed himself as a villain.<\/p>\n \u2014 360Trader (@360_trader) November 22, 2022<\/a><\/p><\/blockquote>\n Trader and investor @BobLoukas called out CZ for his lack of due diligence before tweeting. He shared: \u201cCZ \u2018Let\u2019s work together to improve transparency in the industry.\u2019 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.\u201d<\/p>\n CZ “Let\u2019s work together to improve transparency in the industry.”<\/p>\n 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. https:\/\/t.co\/UA00hieJsC<\/a><\/p>\n \u2014 Bob Loukas (@BobLoukas) November 22, 2022<\/a><\/p><\/blockquote>\n Related: Binance CEO denies report firm met with Abu Dhabi investors for crypto recovery fund<\/em><\/strong><\/a><\/p>\n On Nov 18, Cryptocurrency investment product provider Grayscale Investments<\/a> shared that all digital assets that underlie Grayscale\u2019s digital asset products are stored under the custody of Coinbase Custody Trust Company, LLC. Although the company has refused to provide on-chain proof of reserves or wallet addresses to show the underlying assets, citing \u201csecurity concerns.\u201d At the time of publication, Coinbase $COIN token had experienced a $5.3% increase in price.\u00a0<\/p>\n<\/div>\n![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/655dce21-33d1-46ba-8de2-048dd2ce7b39.png\" "\\"\\"")
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