coinedition.com
Some prominent crypto community figures are again spreading fear, uncertainty, and doubt FUD about Binance. They are arguing that Binance, the largest crypto exchange, may be about to crumble like its former rival, FTX.
The FUD, this time, centers around the price of Binance Coin (BNB). Meanwhile, it has been established that one of the promoters of this panic call against Binance is from the FTX cohort. In particular, the FTX affiliate is Adam Cochran, a renowned Binance critic.
According to Cochran’s website, he has held affiliate contracts with FTX and its U.S. subsidiary, FTX US. Crypto enthusiast Lucas Alexander broke the deal to the crypto community, attracting the attention of Justin Sun, TRX founder.
🤯🤯🤯 @cz_binance @heyibinance https://t.co/JONkj8tE7I
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 20, 2023
In his latest round of FUD, Cochran raised concerns about the Binance Secure Asset Fund for Users (SAFU) and the Industry Recovery Fund (IRI). The Binance critic alleged that the SAFU fund is less secure than it seems.
Cochran highlighted that the BTC in the fund was not set aside from a separate corporate reserve address. According to him, the fund came from Binance’s main BTC hot wallet containing customer funds. This led him to conclude that Binance may be commingling corporate and customer funds.
1/7
— Adam Cochran (adamscochran.eth) (@adamscochran) August 19, 2023
Lol claiming the BNB price is safe because of the safu fund while the recovery fund remains missing?
The fund was supposedly $1b in real stables and now consists of:
-$300m BNB
-$100m of “Binance pegged usd” (wtf is that?)
-$100m TUSD
-$400m in BTC https://t.co/pcRmXVtHR5
Furthermore, the critic alleged that the IRI fund no longer exists. Cochran concluded that the SAFU fund and the IRI fund are being used to prop up the price of BNB. He contended that Binance sells off BTC from the SAFU fund whenever BNB dips in price.
Notably, crypto analyst MartyParty started the FUD around BNB’s price. He tweeted that BNB is yet to drop below $212 amid the widespread bear market. Like Cochran, MartyParty argued that Binance CEO, Changpeng Zhao, was selling Bitcoin (BTC) to ‘save’ BNB from crashing.
Meanwhile, Binance’s CEO replied to the critics, countering their logic. The CEO clarified that the market solely determines BNB price. Zhao highlighted the irony of the alleged $30 to $120 million BNB re-buy that supposedly defends the coin. In his words: “A $30m re-buy is less than 4% of a single day’s volume.”