BeInNews Academy Ltd © Street: Suite 1701 – 02A, 17/F, 625 King’s Road, North Point. Hong Kong.
Changpeng Zhao has been called out for tweeting what appears to be a trading recommendation. The Binance CEO advised followers to avoid shorting(BNB) last month, which, in hindsight, has been proven to be pretty poor advice.
Changpeng “CZ” Zhao, CEO and founder of the hugely popular digital currency exchange, Binance, has drawn flack for giving trading advice via Twitter. The tweet in question was clearly intended to promote the exchange platform’s launch of margin trading for its own native crypto asset, BNB.
Posted on July 18, it reads:
“#BNB is available for margin now. But I don’t recommend shorting it, as you will get #REKT.”
At the time CZ posted the tweet, the price of Binance Coin was around $28.50 or 0.002912 BTC. Although BNB pumped slightly on the day of CZ’s post, it has been mostly trending down against bothand the US dollar since.
Make your own trading calls by creating a free account at Binance, and help out BeInCrypto in the process.
Today, Twitter user @DanDarkPill was quick to remind CZ about the tweet he made recommending followers not to short (bet against) his own exchange’s native cryptocurrency.
I don't recommend tweeting like this.
— dark pill (@DanDarkPill) August 29, 2019
Today, the dollar price of BNB is $22.28, and the Bitcoin price is 0.235 BTC. Clearly, shorting Binance Coin against the recommendation of CZ was a highly profitable trade. Meanwhile, anyone who happened to use the CEO’s optimistic view of BNB’s future to influence a decision to margin long the cryptocurrency is much more likely to be “#rekt,” as CZ puts it himself.
Whether the Binance CEO’s projection for BNB was correct or not is mostly irrelevant, however. His tweet still brings into question whether those in positions of authority in the industry should really be giving such trading recommendations. As a clear figurehead in the cryptocurrency space boasting 422,000 followers on Twitter, it seems irresponsible to be giving any trading advice whatsoever.
Given that CZ’s exchange platform directly benefits from a higher BNB price – the founding team has significant holdings of the cryptocurrency – surely it is even more questionable of the CEO to advise against adding selling pressure by shorting the digital currency. The Coinbase CEO also made a controversial claim over Twitter recently regarding money coming into the cryptocurrency space.
What do you think about CZ’s tweet? Do you think individuals in his position should be making such brazen trading recommendations? Comment below.
Buy and trade cryptocurrencies with a 100x multiplier on our partner exchange, StormGain.
Images are courtesy of Twitter, Shutterstock.
Do you need trading guidance during this Coronavirus outbreak? BeInCrypto is here to help! Join our Telegram Trading Community for Market Updates, exclusive Trading Signals and a FREE Trading Course! Images courtesy of Shutterstock, Trading View and Twitter.