Binance v Coinbase FUD

Binance has been spreading FUD around the crypto ecosystem, but they've found Coinbase is untouchable.

Binance v Coinbase FUD
Photo by Uriel Soberanes / Unsplash

Binance CEO Changpeng Zhao, known online as “CZ,” has been on the warpath. He started this whole FTX collapse saga by calling out doubts around FTX’s reserves and intentionally crashing the price of their FTT token. After spreading FUD around the ecosystem, he locked his eyes on Coinbase–Binance’s biggest competitor. To CZ’s Coinbase FUD, the entire crypto ecosystem responded with a resounding “huh?”

Coinbase is a public US company, its info is public and it’s audited by known firms who are respected, unlike Binance and FTX. Coinbase didn’t have to make a weird token like BNB or FTT to let people “invest” into the exchange without having to go through a public company SOX compliance audit–they just did the audit. Anyone who was paying attention knew Coinbase wasn’t insolvent, and CZ soon after deleted his tweets.

Coinbase’s CEO Brian Armstrong responded in the best possible way: “If you see FUD out there - remember, our financials are public (we're a public company).” Armstrong also linked to Coinbase’s shareholder report where he points out “We hold ~2M BTC. ~$39.9B worth as of 9/30 (see our 10Q).” This also included $24B of ETH, and $30B of other cryptocurrency assets.

The largest institutions in the world trust Coinbase to hold their cryptocurrencies, and Coinbase has partnerships with those institutions, like Blackrock, to offer their clients cryptocurrency investment solutions. They are one of the only companies in the space that has done the work to build credibility and trust.

On the other hand, Binance has only talked about releasing an audit and is registered in the Cayman Islands–no doubt for their loose financial regulations.