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Binance CEO Clears Air on ‘FUD,’ Addresses Crypto Market Crash

2 mins
Updated by Kyle Baird
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In Brief

  • Binance CEO said no one really knows why the market crashed.
  • Zhao disputed claims his exchange converted its holdings to fiat.
  • Nearly $400 million was liquidated from the crypto market in the last 24 hours.
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The crypto market recorded a heavy sell-off during the last 24 hours, impacting several altcoins’ performance. Binance’s CEO seized the opportunity to state that no one really knows what influences this market.

In a June 10 tweet, Binance CEO Changpeng ‘CZ’ Zhao highlighted how human emotions sway the market. According to him, many people transact in a market, and everyone may have their reasons. During the last 24 hours, nearly $400 million was liquidated, with several altcoins recording double-digit losses.

False Narrative: Binance’s Fiat Conversion

Zhao stated that rumors that Binance converted its crypto holdings to fiat were a false market narrative. According to him, while the exchange’s fiat and stablecoin reserves for covering short-term salaries and expenses have decreased, its cryptocurrency reserves have increased over the past months, weeks, or days, depending on the timeframe considered.

His statement comes on the heels of the recent regulatory scrutiny that has bedeviled the exchange. Over the past week, the U.S. SEC sued Binance, Zhao, and its subsidiary, Binance.US, over violations of federal security laws. This news led to a net outflow of $3.1 billion in the past week, according to DeFiLlama data

Top 5 Crypto Exchange Outflows. Source: DeFiLlama
Top 5 Crypto Exchange Outflows. Source: DeFiLlama

CZ Address Robinhood Dumping Rumors

On the second narrative that Robinhood could dump $1.3 billion worth of altcoins on the market, the Binance CEO stated that he had no idea about that. “No idea. You probably know more than me,” CZ tweeted.

On June 9, Robinhood said it would remove ADA, SOL, and MATIC from its platform on June 27. The crypto trading firm’s decision is coming on the heels of the SEC’s decision to classify several digital assets as securities.

To read more about the SEC’s case against Ripple, which could potentially result in XRP being deemed a security, check out this article:
Everything You Need To Know About Ripple vs SEC

Following the news, on-chain investigator Lookonchain reported that several whales began moving the impacted tokens across exchanges. One whale transferred over 5700,000 SOL worth $8.2 million to Binance, Kraken, and Coinbase.

LookOnChain noted that several institutional investors were dumping Polygon’s MATIC, referencing Cumberland and Jump Trading’s deposit to exchanges.

Other Narratives

Zhao also highlighted other popular narratives in the market like the “U.S. ban” and “China/HK unban.” According to him, the two emotions every trader must master in any market are “greed” and “fear.”

He advised his community to manage their risk, assuring users that the Binance platform would continue to work smoothly.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
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