In a recent tweet, Binance CEO Changpeng Zhao has called for the regulation of ‘fake news’ in the cryptocurrency space. It’s currently unclear what this means.
Fake news is rampant in the cryptocurrency world. Much of the market still suffers from hype cycles and false partnerships, along with sensationalist reporting. However, is it enough to merit regulation? According to Binance CEO Changpeng Zhao, it apparently does.
“Regulate Fake News,” Says Binance CEO
In a recent tweet, Zhao called out those who have a narrow view of the world and then proceed to call this “news.” This prompted Zhao to simply say, “we need [to] regulate fake news.” The jab was directed at Mike Dudas, Founder of The Block. He captured the attack in a screenshot:
It’s currently unclear how one would ‘regulate’ fake news or who would be the arbitrator of what is true in this industry. This would lead us down a slippery slope, which many have been right to criticize.
You may recall that TRON (TRX) founder Justin Sun and Zhao both said that they would be committed to having a “FUD fighting fund,” which would apparently be worth more than $1M. “The fudders must pay!” said Justin Sun then. Bear in mind, this is the same Justin Sun who used both Kobe Bryant’s death and even the Coronavirus scare to shill TRON to his followers.
Frankly, it would be hard to argue that this anti-FUD fund, or any like it, would be impartial.
Bad Precedent Set
Fake news is not unique to the cryptocurrency industry, and it would be a dangerous precedent to attempt to ‘regulate’ it. Moreover, it’s even more dangerous to have the industry be ‘self-regulated’ by the very actors that will benefit most from it.
Zhao has made these comments after a tumultuous week for the world’s largest cryptocurrency exchanges. From USDT shortages for margin trading to internal exchange problems with processed orders and balances, the media been following these developments very closely. Additionally, there was also the recent news concerning Binance’s headquarters after it was shockingly revealed that the exchange is not based in Malta whatsoever.
Of course, these stories have been deeply distressing for Binance—however, they were not published without reason nor is it ‘FUD.’ Although the cryptocurrency media has a penchant for sensationalism, it’s a problem that afflicts all media. Exchanges and companies should simply learn to work in this environment best they can because the alternative is much worse.