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Source: Сointеlеgrаph

Coinbase was trending on Twitter on Nov. 22 after Binance CEO Changpeng Zhao, aka CZ, sent out a tweet that appeared to question Coinbase’s bitcoin holdings.

In a deleted tweet, CZ referred to a Yahoo Finance article that claimed “Coinbase Custody is holding 635,000 BTC on behalf of Grayscale.” CZ added, “4 months ago Coinbase (the exchange, I believe) had less than 600k,” referring to a 4-month-old article by Bitcoinist. Binance’s CEO has made it clear that he is merely quoting “news reports” and is not making any claims of his own. However, his tweet was not well received by the crypto community.

Screenshot of CZ’s recently deleted tweet.

Soon after, Coinbase CEO Brian Armstrong indirectly responded to CZ with a series of tweets, stating; “If you see FUD, remember that our financial statements are public (we are a public company),” referring to a letter from Coinbase shareholders for the third quarter. He explained that his company owns “~2 million BTC. Value ~$39.9 billion as of September 30 (see our 10th quarter).”

Shortly thereafter, CZ deleted his tweet, stating, “Brian Armstrong just told me the numbers in the articles are wrong. Deleted the previous tweet. Let’s work together to increase transparency in the industry.”

Given recent market events and Binance’s alleged role in instigating them, some have accused CZ of innuendo. As a reminder, the FTX liquidation that has led to a general market spiral over the past two weeks is believed by many to have been initially caused by the CEO of Binance after his tweets caused panic and raids on FTX banks.

Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; “CZ’s last tweet about Coinbase bitcoin assets, which he just deleted, didn’t look good. I understand the argument that he is trying to protect the industry, but CZ is more than smart enough to know that exchange and deposit wallets are separate.”

Mario Navfal, founder and CEO of, tweeted: “Does CZ imply that Coinbase does NOT store 1 to 1 BTC on behalf of the Grayscale Trust???? See his latest tweet. This is a concern that I have never had until now. This is a VERY serious matter (implied charge?).”

Analyst, trader and investor @360_trader shared: “Today CZ just proved that he is all about one thing…his empire. He is NOT here to watch over the industry… he deleted the tweet… But now… as I expected… He has exposed himself as a villain.”

Trader and investor @BobLoukas accused CZ of lack of due diligence before tweeting. He shared, “CZ “Let’s work together to increase transparency in the industry.” Also CZ: let me text millions of random FUDs in the midst of a major bear market liquidity event before perhaps just being contacted for confirmation.”

Related: Binance CEO denies the firm said it met with Abu Dhabi investors for a cryptocurrency recovery fund

On November 18, cryptocurrency investment product provider Grayscale Investments disclosed that all digital assets underlying Grayscale’s digital asset products are held under the custodianship of Coinbase Custody Trust Company, LLC. Although the company declined to provide proof of reserves or wallet addresses on the network to show the underlying assets, citing “security concerns.” At press time, Coinbase’s $COIN token is up 5.3%.

Source: Сointеlеgrаph

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