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Substratum CIO asks clarification, CZ hints the day-trading of ICO funds

www.chepicap.com 18 February 2019 08:00, UTC
Reading time: ~3 m

Binance's CEO, Changpeng Zhao responds to Substratum CIO's dissatisfied questions, hinting that they have been day-trading their ICO funds. 

Following the delisting announcement made by Binance just a couple of days ago, the Substratum team posted on their Twitter account that they have reached out to the exchange for a clarification.

Read more: Binance purges five more projects from exchange including WINGS and SALT

Substratum became aware of our Binance delisting Feb 15. We have reached out to Binance for explanation. As soon as we have more information we will make it available. Development of Substratum continues and we are moving forward with monetization, security, and usability.

— Substratum (@SubstratumNet) February 15, 2019

The tweet received many responses, including from Binance’s CEO, Changpeng Zhao, which ended up in engaging a “conversation” with Substratum’s CIO.

Initially, CZ was only giving a thumb 👍 to a comment made by a user, @CHalexov2016, who said, “Again guys! Working product made price and not exchange! Btw i hodl some $sub and lost with your product! But not becouse of @binance delist but becouse of project team and founders! 🤝👍🏼”

His response triggered the “dissatisfied” Substratum’s CIO, Abram Cookson, who “demanded” explanations on the delisting decision.

Project? Team? Founders? I Don’t like my dev team thrown into the fire with a single emoji. They work hard daily and commit to the public repo. Was it me? Did I make false claims? Just curious.

— abramcookson (@abramcookson) February 16, 2019

CZ’s response to the question hinting that Substratum has been using the funds raised from ICO for trading.

“Maybe stop trading the funds you raised that was intended for product dev?” he tweeted, followed by a statement that he will not respond again and observe Cunningham’s law, instead.

The Substratum team responded by claiming that it never happened and that they’ll be more than willing to provide “more granular level detail” to Binance to clarify.

Never happened, happy to provide more granular level detail directly to Binance within exchange wallets if it clarifies things:https://t.co/uTEfzKgLov

— Substratum (@SubstratumNet) February 16, 2019

And that’s not all, Cookson replied again appreciating CZ’s response, while also saying that he doesn’t control their funds or marketing and expecting transparent dialog and open source to “regain trust”.

Defying his previous comment, CZ replied back by saying that Binance couldn’t give early warnings for delisting, since he said, “Some teams (not you) may dump their own coins if they have early news.”

alright, constructive conversation, will respond. On our side, please understand we can't give early warnings for delisting. Some teams (not you) may dump their own coins if they have early news. Need to control info leakage. No easy way about it. keep building, good luck!

— CZ Binance (@cz_binance) February 16, 2019

CZ’s last comment responded by the Substratum team that said they will provide access to Binance to their exchange account to clarify the day trading “accusation”.

The other comments vary, some expect it is just “a comedy of unintended errors and misunderstandings and that in the end, all will come right” or that “Binance will give SUB a second chance”. Others affirm CZ’s allegation by saying, “If they have knowledge that the substratum team are trading their ICO funds, I’d argue they have an imperative to delist $sub. This rumor has been around for a while and $sub holders have had a chance to dump their stacks.”

On Reddit, apparently, there has been a post trying to unite Substratum’s ICO investors to file a class action lawsuit against the company.

SUBSTRATUM class action lawsuit. Please reach out to join and fight against all the damage the team has caused. *ICO investors needed from r/CryptoCurrency

Does Substratum really day-trade their ICO funds? Will there be any class action lawsuits against Substratum? As always, stick with Chepicap for updates.

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