3 - 5 minute read
Binance CEO Changpeng Zhao has taken to Twitter to address the issue of FUD (fear, uncertainty, and doubt) surrounding the popular cryptocurrency exchange. In a series of tweets, Zhao outlined nine possible reasons for the negative sentiment surrounding Binance.
One reason, according to Zhao, is a general opposition to centralized exchanges (CEXs) within the cryptocurrency industry. He acknowledged that some members of the community may prefer decentralized exchanges (DEXs) and are therefore critical of CEXs like Binance.
Another reason, he suggested, is that some users may experience issues with Binance, such as losing money on trades or having difficulty accessing the platform, and then blaming the exchange for their problems. In these cases, Zhao said that the resolution may not always be clear-cut.
Why do people FUD about @Binance?— CZ 🔶 Binance (@cz_binance) December 23, 2022
A few (non-exhaustive) reasons. Thread 1/98
Zhao also pointed to competition within the industry as a possible cause of FUD, stating that some players may view Binance as a threat and go to great lengths to lobby against the exchange. This can include paying media outlets and buying houses for their CEOs.
Another reason, according to Zhao, is that some media outlets may be paid to spread negative information about Binance, while others may be “owned” by Binance’s competitors. He also noted that some media outlets may have readerships that are more traditional and therefore less receptive to cryptocurrencies, leading to negative coverage.
Zhao also pointed out that cryptocurrencies have not yet reached mass adoption, with fewer than 5% of people globally using them. This can lead to skepticism and negative views among those who are not familiar with the technology.
Additionally, Zhao mentioned that some politicians and policy makers may view cryptocurrencies as a threat to traditional banks and therefore oppose them. He argued that the best way to protect banks from disruption is to allow them to adopt blockchain technologies as early as possible.
Zhao also acknowledged that some people may simply have a general distrust of all centralized exchanges due to the actions of a few bad actors in the past. He also mentioned that the size of Binance may contribute to negative sentiment, as writing about the exchange generates more clicks than writing about smaller exchanges.
Finally, Zhao acknowledged that there may be a small number of people who harbor jealousy or racism towards him, as a Chinese-Canadian. However, he stated that Binance does not care about these motivations and instead focuses on building its products with the support of its users.
Zhao acknowledged that Binance is not perfect and welcomed feedback, but urged users to ignore FUD and focus on building the industry together. He wished his followers a merry Christmas and thanked them for their support.