An Attempt to Bring Down Coinbase?

[Darker45]

We all know Binance is now closing in on its competitors. CZ has recently succeeded in playing a critical role in the collapse of one of its biggest rivals, FTX. He, then, went on to prophesize a domino effect that would also see other crypto competitors crumbling down, all the while emphasizing Binance's stability and safety.

After subtly hitting Crypto.com, Gate.io, and probably others after instigating competitors to also provide proof or reserves after Binance did, CZ is still apparently on the prowl. Just yesterday, he made an uninformed tweet, somehow putting into question its remaining biggest rival's finances.


https://cointelegraph.com/news/crypto-twitter-reacts-to-binance-ceo-s-deleted-tweet-about-coinbase-s-bitcoin-holdings

Afterward, he deleted it, saying in another tweet that the figures mentioned in the article he linked were false, and proceeded to mention about working together.


https://twitter.com/cz_binance/status/1595126765143617536

But this came only after Coinbase's CEO, Brian Armstrong, created a Twitter thread warning of a FUD and reminding that the company is public as well as its finances.


https://twitter.com/brian_armstrong/status/1595126123439923200


This, to me, is the same cunning action by CZ that finally killed FTX. It just so happened that, unlike FTX, Coinbase has the real numbers to show. Otherwise, it could have dealt them the same fatal impact. Such an irresponsible public statement from an influential person who has millions of followers could cause massive trust and confidence issues and, therefore, a huge and sudden exchange run.

Not only is this questionable because of the fake numbers and the failure of CZ to at least verify their veracity before publicly talking about it, this is also a question of his much-publicized intention to help the industry. If his intention were to truly help this industry, he could just reach out to crypto companies privately, point out some facts, and perhaps extend help. But he doesn't. He prefers to cast doubt on them. This, to me, is another proof that CZ is fake and is actually only after enlarging his empire and ensuring monopoly.

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[NeuroticFish]

This, to me, is the same cunning action by CZ that finally killed FTX. It just so happened that, unlike FTX, Coinbase has the real numbers to show. Otherwise, it could have dealt them the same fatal impact.

That's correct. However, the blow on FTX was fatal because they had no reserves whatsoever, which seems not to be the case for Coinbase.

Such an irresponsible public statement from an influential person who has millions of followers could cause massive trust and confidence issues and, therefore, a huge and sudden exchange run.

Irresponsible? It's calculated and many could argue that such statements, which call for transparency are good. Such calls, that can make more people secure their funds in their own custody, are good for the users (as long as they do manage to withdraw).
But fake calls can ruin his "golden aura" sooner or later and he may lose credibility, followers, ... so he cannot do this for too many times, and I am sure he knows that. I would not be overly worried.

[hugeblack]

I hope that the collapse of Binance will be quick and smooth because it will cause the biggest chaos ever. As for this tweet, the intention is clear, and everyone should know that CZ behavior is monopolistic, and this monopolistic behavior will enhance centralization more than decentralization.

As for CZ FUD, most American companies have more scrutiny than other companies, so I think that Coinbase's financial situation is much better, and I personally trust them more than Binance.

[bitmover]

Such an irresponsible public statement from an influential person who has millions of followers could cause massive trust and confidence issues and, therefore, a huge and sudden exchange run.

Irresponsible? It's calculated and many could argue that such statements, which call for transparency are good. Such calls, that can make more people secure their funds in their own custody, are good for the users (as long as they do manage to withdraw).
But fake calls can ruin his "golden aura" sooner or later and he may lose credibility, followers, ... so he cannot do this for too many times, and I am sure he knows that. I would not be overly worried.

I think tweet from CZ was not ethical. He was showing number from 2 different news websites,  which could be wrong (and they were). Those are not official number of coinbase (which is an open company listed in stock exchanges,  way more transparent than binance).

He was spreading fud against one of his main competitors using wrong data.

[JeromeTash]

Never liked him at all, with the way he behaves, like some sort of god in crypto while shilling his centralized shitcoins. The way he tweets about rivals pretty much shows what his intentions are, whilst hiding behind the "working together to improve transparency in the industry" quote.

I don't see other exchange CEOs doing this kind of bullshit towards his exchange.

I am not a fan of coinbase, but I hope they stay long enough to see the decline of Binance, so they could have the last laugh

[LeGaulois]

Unlike others I don't think it was done with the intention of fooling people.

What he did was just to talk about something he doesn't know. We call that ignorant. The problem is, seeking for the buzz on the internet, to maintain his cult awake, he is willing to tweet shit, without really checking.

He must have been convinced by his first tweet, and then someone educated him. That's how it usually goes with ignorants
No idea why people are so influenced by CZ. The guy is not preaching the crypto world, he is just monopolising his market. #MoneyMatters.
He's not on your side

[Darker45]

This, to me, is the same cunning action by CZ that finally killed FTX. It just so happened that, unlike FTX, Coinbase has the real numbers to show. Otherwise, it could have dealt them the same fatal impact.

That's correct. However, the blow on FTX was fatal because they had no reserves whatsoever, which seems not to be the case for Coinbase.

Not to mention that CZ had the actual means to start the mass withdrawal. He had tens of millions of FTT worth almost $600 million. That's a huge leverage against FTX. He doesn't have this kind of tool against Coinbase. If he had, that FUD coupled with a huge dump could have annihilated another competitor.

Such an irresponsible public statement from an influential person who has millions of followers could cause massive trust and confidence issues and, therefore, a huge and sudden exchange run.

Irresponsible?

Only because he should have at least verified his information before releasing a public statement. It was scathing, so he should at least messaged Brian and ask whether the numbers were correct. But what he did, he was obviously spreading FUD. Either way, yeah, if it made people withdraw their funds from a centralized exchange, there was indeed something good out of it.

As for CZ FUD, most American companies have more scrutiny than other companies, so I think that Coinbase's financial situation is much better, and I personally trust them more than Binance.

I agree that Coinbase's financial situation is probably much better. I don't think it is in danger. I also agree that it's worth trusting more than Binance. But being an American company is never a guarantee. FTX US, Celsius, Voyager, BlockFi, Gemini, and others are all American companies, if I'm not mistaken.

[hugeblack]

Unlike others I don't think it was done with the intention of fooling people.

What he did was just to talk about something he doesn't know. We call that ignorant. The problem is, seeking for the buzz on the internet, to maintain his cult awake, he is willing to tweet shit, without really checking.

He must have been convinced by his first tweet, and then someone educated him. That's how it usually goes with ignorants
No idea why people are so influenced by CZ. The guy is not preaching the crypto world, he is just monopolising his market. #MoneyMatters.
He's not on your side

Suppose that the Binance platform is listed on the US stock market, can he tweet such a tweet? I do not know, but the intention to manipulate and mislead is clear in the tweet, just as publishing false information and apologizing for it is not considered behavior that does not deserve punishment, or at least an investigation and compensation for the platform for any damage caused by these rumors.

[NeuroticFish]

Not to mention that CZ had the actual means to start the mass withdrawal. He had tens of millions of FTT worth almost $600 million. That's a huge leverage against FTX. He doesn't have this kind of tool against Coinbase. If he had, that FUD coupled with a huge dump could have annihilated another competitor.

Yep, he had the fuel, he lighted the matches...and even more, FTX proven itself to be just an ugly Ponzi.
On Coinbase, on the other side, he has nothing. He tried to convince the plebs come with the fuel, by showing them the matches. It didn't work out. I agree with this:

I think tweet from CZ was not ethical.

Of course, in the "wild west" of not really regulated businesses, this sometimes works.


Interestingly, if this type of unethical behavior would have not be allowed by regulations, FTX may be still standing (probably to implode later, with even higher human costs).

[EarnOnVictor]

I hope that the collapse of Binance will be quick and smooth because it will cause the biggest chaos ever. As for this tweet, the intention is clear, and everyone should know that CZ behavior is monopolistic, and this monopolistic behavior will enhance centralization more than decentralization.

As for CZ FUD, most American companies have more scrutiny than other companies, so I think that Coinbase's financial situation is much better, and I personally trust them more than Binance.

Why should Binance collapse? This is certainly a bad wish for the company of someone trying to bring light to some darkness in the crypto exchange. I see nothing wrong with what CZ is doing. This is just like the case of the unregulated or underregulated bank in which a rival is pointing out the unethical behaviour of others. If they are clean, let them fire back with proof and stop thinking one is trying to monopolise anything.

Centralised exchanges are not to be trusted and it is to our advantage if they attack themselves. This will keep people informed and prepared, and only shed more light on their shady dealings.

[SirJohnVonSlotty]

I hope that the collapse of Binance will be quick and smooth because it will cause the biggest chaos ever. As for this tweet, the intention is clear, and everyone should know that CZ behavior is monopolistic, and this monopolistic behavior will enhance centralization more than decentralization.

As for CZ FUD, most American companies have more scrutiny than other companies, so I think that Coinbase's financial situation is much better, and I personally trust them more than Binance.

Auf, why would you wish that? I mean, I agree around Coinbase, but the collapse of a huge platform like Binance would just bring general harm to the whole industry. Just look what hit the industry took because of FTX.

[NeuroticFish]

Auf, why would you wish that? I mean, I agree around Coinbase, but the collapse of a huge platform like Binance would just bring general harm to the whole industry. Just look what hit the industry took because of FTX.

Because the giant centralized crypto platforms that work on fractional reserves or no reserves at all because the lack of regulations and scrutiny must - sooner or later - disappear.
You gave FTX as example. If FTX would have been left alive, it would have been only wasting (much) more of investors' and users' money. Do you want the same from Binance (i.e. waste money) if it's the case?
Learn to keep your funds in your own wallet instead of others' pocket, then you won't care much if this or that platform falls.
And the price.. that will recover, don't worry, as soon as trust is restored in the industry.

[hugeblack]

Auf, why would you wish that? I mean, I agree around Coinbase, but the collapse of a huge platform like Binance would just bring general harm to the whole industry. Just look what hit the industry took because of FTX.

The nature of Binace was trying to dominate the market, they started printing their own currency, offer staking, their own network, stabecoins, delist other stablecoins, printing fake coins to buy more bitcoins, spending money on advertising, doing whatever it takes to please governments and other things.

I used to admire Binance' behavior, but they're starting to move in a lot of areas just as Apple and Google are doing now, they can enforce their rules indirectly because of people who need their phones or their own operating systems/services.

Therefore, the project/coin that earns the satisfaction of Binance will raise its price insanely, and vice versa.

If you track these behaviors, you will rarely find a real platform that lives, they all die because of mismanagement of customer funds, I just hope that if this happens to Binance, to be quiet.

[stompix]

Auf, why would you wish that?

Because right now there is nothing more toxic than Binance and CZ for the crypto environment?
He is the one spreading all kinds of lies about competition, he is sabotaging other exchanges, he is sabotaging Bitcoin itself by overcharging every withdrawal, promoting his BNB version of Bitcoin, spamming the network, and many many others.

Such an irresponsible public statement from an influential person who has millions of followers could cause massive trust and confidence issues and, therefore, a huge and sudden exchange run. Not only is this questionable because of the fake numbers and the failure of CZ to at least verify their veracity before publicly talking about it, this is also a question of his much-publicized intention to help the industry. 

Or, he knows he has no coins in case a coin run happens on Binance also so he tries scaring customers from other exchanges to move coins to Binance so he has the liquidity to deal with a possible panic since behind the picture he paints in the media and on social networks he runs the same fractional reserve that brought others down.
There is a senate hearing incoming after more and more have started questioning exchanges, their balances and policies and I'm pretty sure the one panicking right now is not Armstrong but CZ.