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Crypto Twitter reacts to Binance CEO’s deleted tweet about Coinbase’s Bitcoin Holdings

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Coinbase was trending on Twitter on November 22 after Binance CEO Changpeng Zhao, also known as CZ, sent out a tweet that appeared to question Coinbase’s Bitcoin holdings.

In the since-deleted tweet, CZ referenced a yahoo finance article that claimed “Coinbase Custody holds 635,000 BTC on behalf of Grayscale.” “4 months ago, Coinbase (I assume the exchange) had less than 600k,” added CZ, linking to a 4-month-old article from Bitcoinist. The Binance CEO made it clear that he was simply relaying “news reports,” and did not make any claims of his own, however, his tweet was not well received by the crypto community.

Screenshot of CZ’s since-deleted tweet.

Soon after, Coinbase CEO Brian Armstrong indirectly responded to CZ in a series of tweets, saying, “If you see FUD out there — remember, our financials are public (we are a public company),” with a link to Coinbase’s Q3 shareholder letter. He explained that his company owns “~2M BTC. ~$39.9 billion as of 9/30 (refer to Q10). “

CZ deleted his tweet shortly after, saying, “Brian Armstrong just told me the numbers in the articles are wrong. The previous tweet has been deleted. Let’s work together to improve transparency in the industry.”

Given recent market events, and Binance’s notable role in instigating them, some have called CZ a signal. To summarise, many believe that the FTX liquidation crisis, which has led to an all-out market maelstrom over the past two weeks, was initially triggered by the CEO of Binance after his tweets caused panic and banks flooded into FTX.

Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; “This recent tweet by CZ about Coinbase’s bitcoin holdings that he just deleted didn’t sound great. I have an argument that he’s trying to protect the industry but CZ is more than smart enough to know that exchange and custodial wallets are separate.”

Mario Noval, Founder and CEO of IBCgroup.io, tweeted: “Does CZ imply that custodianship of Coinbase does not hold 1 to 1 BTC on behalf of Grayscale Trust??? See his recent tweet. This is a concern I didn’t even have.” Now. That’s a very serious question (an implied accusation?) to be asked.”

Analyst, trader and investor @360_trader shared: “CZ has proven today that it’s all about one thing…his empire. He’s not here to hunt down the industry…he deleted the tweet…but now…as I already predicted…he’s revealed about himself as a villain.”

Trader and investor @BobLoukas has called out CZ for his lack of due diligence before tweeting. Share: “CZ” Let’s work together to improve transparency in the industry. CZ too — let me tweet millions some random FUD in the middle of a major bear market liquidity event before maybe just reaching out for confirmation.”

Related: Binance CEO Denies Report Company Meets Abu Dhabi Investors for Crypto Recovery Fund

On November 18, a cryptocurrency investment product provider Grayscale investments We shared that all of the digital assets behind Grayscale’s digital asset products are held under the custody of Coinbase Custody Trust Company, LLC. Although, the company refused to provide on-chain proof of reserves or wallet addresses to show the underlying assets, citing “security concerns.” At press time, the Coinbase $COIN token has seen a 5.3% increase in price.

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