FTX Infection Paves Way for Criticism against Binance
After FTX was forced to face bankruptcy proceedings, Binance has been overwhelmed with a number of uncertainties, doubts, and unnecessary speculation.
Peculiarities are stemming out of FTX’s downfall which subsequently paved way for rumors that Binance also is under investigation by US regulators.
Reuters’ 12th December publication also noted that Binance is under an inquiry by the officials of the US Department of Justice (DOJ).
Due to the rumors, Binance has been mostly unable to derive any benefits from the crypto market conditions.
Instead, Binance is being heavily criticized for several reasons and one of them being the crypto trading platform’s ‘proof-of-reserves (POR)’.
The exchange has reportedly come under great fire due to the recent POR dilemma. Although Binance tried taking an initiative from its end, it ended up getting backfired.
Even the audit that Mazars conducted on the exchange’s POR was deleted by the auditor following the negative criticism it received from the crypto industry.
BNB’s Failure to Attracting Any Past Week Gains
For instance, in the past week, a modest gain was recorded in individual economies of almost all cryptocurrencies and tokens except for BNB.
BNB is the native digital token of Binance which unquestionably is currently the world’s leading and biggest crypto trading platform.
Binance’s CEO Response to Reuters’s News Item
Being concerned with the growing speculation, tension, and uncertainty, Binance’s CEO namely Changpeng Zhao took on Twitter to address developing issues.
Zhao stated that nobody likes speculation, tension, and uncertainty because they are extremely annoying.
However, he suggested that over the years Binance has learned how to capitalize on them and use them in the firm’s growth and expansion.
He then addressed the people spreading speculations and advised them to make good use of their abilities in positive activities.
Speculations Have Helped Binance to Grow Exponentially
Zhao also claimed that several times in the past Binance has successfully dealt with speculations and this time is no different.
He stated with conviction and valor that speculations bolster Binance’s supporters who then come in defense for safeguarding mutual interests.
Zhao further pointed out that since Binance came into being it has been victimized time and again.
He insisted that it is not Binance’s first time when the firm has been subjected to unwarranted speculation sponsored by competitors.
Binance Supporters Fight For Common Cause
He even went on to suggest that there hasn’t been a single week since the beginning when Binance hasn’t dealt with such speculations.
Zhao stated that each time Binance successfully safeguarded its interests and of its customers by avoiding getting into controversies and speculations.
Zhao’s commentary on Twitter shows that it was Reuters’s news item published on 12th December to which Zhao was responding to.
Insiders
Reuters noted that Binance is being investigated by DOJ and this fact was revealed to it by Binance’s insiders.
The news agency claimed in the news item that officials in DOJ are currently exploring the possibilities of indicting Binance in criminal proceedings.
It may be noted however that there is an investigation pending with DOJ against Binance. Rumors suggest that DOJ would very soon be announcing its verdict for bringing an end to long-pending litigation.
More Than 8% Value Lost Instead of Making Gains
On the other side of the story lies Binance’s BNB, a prominent tokenized crypto whose value is declining quite rapidly. Even while there were appreciating modest gains the past week, however, BNB failed in deriving any benefits from them.
Instead, the asset lost approximately 8.5% and 8% of its value in the past 14 days and 7 days respectively against USD.
The Crypto economy led by Bitcoin and Ethereum accumulated promising gains in the past 7 days aggregating up to 5 to 7%. However, there were zero gains, particularly for BNB, whose value declined immodestly.
