Značka: investments

Bitcoin capitulations abound — Data shows realized and unrealized losses at record-highs

Being three weeks removed from the FTX collapse, Bitcoin (BTC) analysts are combing through data to decipher whether more selling will continue or if a bear market floor has been reached. One thing miners, short-term and long-term holders have in common is they are losing in the Bitcoin market right now. According to on-chain analysis from Glassnode, the scale of both realized and unrealized losses amongst Bitcoin holders is one of the heaviest capitulation events in BTC’s history. Capitulation is hindering all groups from the increasing number of bankruptcies and dwindling miner revenue. Bitcoin’s realized losses fourth largest on record while unrealized losses increaseNovember recorded $10.8 billion in 7-day realized losses for Bitcoin. The largest recorded realized loss in Bitcoin’s history is June 2022 when $19.8 billion was recorded. Such losses show that a large volume of Bitcoin has changed hands at discounted prices.Bitcoin realized 7-day losses. Source: GlassnodeA popular crypto investing saying is “you cannot lose if you do not sell.” Unrealized losses track the entire Bitcoin market versus total market capitalization. The November 2022 56% unrealized loss is the largest in the current bear market. In 2014-2015, unrealized losses hit an all-time high for Bitcoin holders at 86%. The current unrealized losses are the fourth largest in Bitcoin’s history.According to Glassnode analysts: “This metric has recently peaked at 56%, which is the highest for this cycle, and comparable to prior bear market floors.”Bitcoin unrealized losses 7-day moving average. Source: GlassnodeBlock times slow down as Bitcoin miners struggle Bitcoin investors are not the only group capitulating in the current market. Bitcoin miners are struggling to remain profitable with the depressed prices.There it is. Hash Ribbon miner capitulation confirmed. Triggered by the $10B FTX fraud and subsequent collapse, Bitcoin miners are now going bust and Hash Rate is trending down. pic.twitter.com/TorX7PzrNu— Charles Edwards (@caprioleio) November 28, 2022Since Bitcoin miners are under pressure to remain financially viable, this affects the BTC mining hash rate. A reduction in Bitcoin’s hash rate slows down BTC transactions. According to HashRate Index, block times reached over 11 minutes. Bitcoin’s hashrate is dropping like a rock↘️Bitcoin’s 7-day average hashrate is currently 236 EH/s, a 14% decrease from its 274 EH/s ATHBlock times are sluggish as a result: 11 minutes and 12 seconds on average this epochhttps://t.co/JN7OmpJ8X0 pic.twitter.com/ckxqEqOGqX— Hashrate Index (@hashrateindex) November 28, 2022

Despite the current challenges, analysts believe that capitulation is healthy for starting the next bull run. Glassnode notes:“One consistent event which motivates the transition from a bear back towards a bull market is the dramatic realization of losses, as investors give up and capitulate at scale.”With so many groups currently at a loss at this stage of the bear market post-FTX collapse, Bitcoin and overall market sentiment will need to improve to spur new money to drive a bull run. Without improved sentiment, the capitulation may not match previous Bitcoin cycles. The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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FTX collapse impacts Miami’s nightclub scene: Report

The fallout from the collapse of FTX spans beyond the Web3 and crypto ecosystem. Reports gathered by the Financial Times suggest that nightclubs in Miami have been negatively affected by the collapse of the once-reputable cryptocurrency exchange.According to nightclub owners, young, nerdy crypto bros went from lavishly spending on champagne showers and buying $50,000 tables at clubs to completely vanishing from the nightlife scene.Andrea Vimercati, director of food and beverage at the Moxy Hotel group, told the Financial Times: “They were ordering 12 or 24 bottles of the most expensive champagne and just showering themselves without even drinking.” According to the nightclub staff, the young, nouveau riche entrepreneurs walked around the clubs pulling out their digital wallets and bragging about the amount of money they were making.However, the unexpected implosion of FTX, loss of funds and fall in the value of cryptocurrencies have completely changed the nightlife scene in Miami. The young crypto entrepreneurs who once splurged in nightclubs now appear to be visibly absent following the collapse of FTX. Gino LoPinto, operating partner at Miami nightclub E11even, shared that once his establishment started accepting cryptocurrency payments, it processed $6 million worth of transactions between April and December 2021. However, over the last three months, the club has only recorded about $10,000 worth of transactions. Related: FTX collapse put the Singapore government in a parliamentary hot seatSince the collapse of FTX, many companies and individuals have been affected. On Nov. 28, BlockFi announced that it had filed for Chapter 11 bankruptcy, citing the collapse for its troubles. On Nov. 15, Cointelegraph reported that FTX-owned Japanese cryptocurrency exchange Liquid took to Twitter to officially announce it had suspended fiat and crypto withdrawals on its Liquid Global platform.

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MakerDAO community votes against CoinShares' 500M investment proposal

Decentralized lending protocol, MakerDAO, has voted against crypto investment firm CoinShares’ proposal to invest between 100million and 500million worth of the community’s funds, into a portfolio of corporate debt securities and government-backed bonds for yield, as an investment strategy. 72.43% of the community votes went against CoinShares’ proposal to invest MakerDAO’s funds into various traditional assets. If the community had voted in favor of CoinShare’s proposal, the crypto investment firm would have provided “a variable APY above the SOFR interest rate (3.01% as of October 26, 2022) in the community’s preferred currency (DAI, USDC, USD…) to MakerDAO”, which would have been withdraw-able on-chain. On the community board of MakerDAO, a few members explained why they voted against the proposal. A community member with the username “Feedblack Loops LLC” shared:“Since governance has voted on excess USDC then available, going to just say no to proposals of this type moving forward until the house gets in order. Coinshares had many incongruencies up front but did a decent job of articulating confusing portions of their proposal. Optimistic for a revision / different approach.”Another user by the name Llama, who also voted against the proposal, said: “We believe this proposal to be extremely beyond protocol risk tolerance.”Related: MakerDAO co-founder Nikolai Mushegian dies at 29 in Puerto RicoIn October, the MakerDAO community approved the custodianship of $1.6 billion worth of the stablecoin USD Coin (USDC) with the institutional prime brokerage platform for crypto assets, Coinbase Prime. The custodianship was expected to allow the MakerDAO community to earn a 1.5% reward on USDC held with Coinbase Prime. On Oct. 14, Cointelegraph reported that MakerDAO’s revenue plummeted in the third quarter of 2022, caused by a fall in loan demand and few liquidations, while expenses remained high.

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Crypto fund investment still dominated by the United States: Database

Despite venture capital funding halving in October, there seem to be funds that still remain bullish on this space investing in emerging markets, Web3 and infrastructure. But, most people do not know who these mysterious funds are or what they are made of, or if there is a project starting up, how to get in touch with these funds.That is why Cointelegraph Research created a Crypto Funds Database, which keeps track of a list of nearly 900 different crypto funds from around the world. This database is designed for those looking to keep up with contacts from the movers and shakers within the crypto industry. From general information like founding dates, contact information (with backup contacts as well), size of firms, assets under management (AUM) size and much more, this database provides a great overview with actionable data. The Crypto Fund Database can be accessed in the Cointelegraph Research Terminal here. The United States houses most crypto funds 82.4% of all crypto funds come from ten countries, led by the United States with 419 funds. A distant second is the United Kingdom with 51 funds, followed by China at 46. The funds in these three countries exceed 500 billion in AUM and can be a formidable force in shaping the future of Web3 and the crypto space.As regulation discussions heat up in the United States, it may be interesting to see if these funds shift to relocation to more crypto-friendly geographies if the bureaucratic red tape does not allow for innovation to be invested in.The Cointelegraph Research teamCointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical and hard-won experience, the researchers on the team are committed to bringing the most accurate and insightful content available on the market.Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The Cointelegraph Research team utilizes APIs from a variety of sources in order to provide accurate and useful information and analyses. Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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Trouble in the Bahamas following FTX collapse: Report

Following the collapse of crypto exchange FTX, which was headquartered in the island nation of Bahamas, Bahamians are reportedly still trying to find a way to make sense of everything, while remaining optimistic about the future. According to a report by the WSJ, the island nation — which encouraged cryptocurrency companies to feel at home with their “copacetic regulatory touch” — has been rocked by the implosion of FTX. The Bahamas, which was also hard hit by hurricane Dorian in 2019 and the pandemic shortly afterward in 2020, was already struggling to find ways to strengthen its economy which relies heavily on tourism and offshore banking for a bulk of its GDP. It appeared that the prime minister of the Bahamas, Philip Davis, and his government believed crypto could play a critical role in the island’s economic recovery. Now, the community suggests that FTX’s sudden implosion has left a trail of unemployment on the tiny 80-square-mile island. While functioning at full capacity, FTX provided employment for locals, as it reportedly spent over “$100,000 a week on catering” and also set up a private shuttle service to transport workers around the island. FTX also hired a number of local Bahamians in areas such as logistics, events planning, and regulatory compliance, according to the WSJ. With the collapse of FTX, many high-spending foreigners who worked for the company and once boosted the local economy have reportedly fled the island, leaving Bahamanian security guards to now guard “nearly vacant buildings.”Related: SBF, FTX execs reportedly spend millions on properties in the BahamasIn the aftermath of the fall of FTX, some crypto community members have said they feel no sympathy for the effects of the collapse of FTX on the tiny island nation.A contributor on the Hacker news with the username matkoniecz commented; “Given that Bahamas help rich people and companies to evade taxes, my sympathy to negative consequences of that are limited.” Another user going by the handle Exendroinient00 shared, “Nothing wrong with inviting every scammer to do scamming on your islands,” in reference to the island’s laws, which seem to incentivize offshore banking activities on its island. On Oct. 18, Cointelegraph reported that the Bahamian securities regulator ordered the transfer of FTX’s digital assets to a wallet owned by the commission “for safekeeping.”According to a statement by the Royal Bahamas Police Force sent to Reuters on Nov 13, an investigation of possible criminal misconduct over the insolvency of FTX is underway by financial investigators and the Bahamas securities regulators. 

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Crypto Biz: Institutions short Bitcoin as SBF is ‘deeply sorry’ for FTX collapse

The monumental collapse of FTX will go down as one of the biggest corporate scandals of all time. But, at least Sam Bankman-Fried, or SBF, is sorry. On Nov. 22, the disgraced founder of FTX penned a letter to his former employees describing his role in the company’s bankruptcy. “I never intended this to happen,” he wrote. “I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash.” Get this: SBF still thinks the company can be saved because “there are billion of dollars of genuine interest from new investors.” Shouldn’t he be preoccupied with trying to avoid jail right now?Bitcoin (BTC) and the broader crypto market have been reeling in the wake of the scandal. While this has allowed many diamond handed hodlers to accumulate more BTC on the cheap, institutional investors are using this opportunity to short the market. We may finally get that final capitulation to round out the current four-year cycle. As always, this week’s Crypto Biz newsletter delivers all of the latest high-profile business news from our industry. Sam Bankman-Fried says he is ‘deeply sorry’ for collapse in letter to FTX teamSBF’s letter to former FTX employees painted the picture of a deeply remorseful founder who managed to squander billions because of excessive margins and poor oversight. He also blamed the “run on the bank” for FTX’s ultimate demise. For those of you keeping track, the bank run that SBF mentioned was triggered by Binance CEO Changpeng Zhao who, on Nov. 6, disclosed on Twitter — of all places — that he would be selling $500 million worth of FTX tokens. That announcement triggered a tidal wave of redemptions on FTX as users rushed for the exit. Within 48 hours, FTX was shown to be insolvent. FTX owes over $3 billion to its 50 biggest creditors: Bankruptcy filingThe hole in FTX’s balance sheet is estimated to be worth around $8 billion — and a huge portion of that is owed to just 50 people. New bankruptcy filings in the state of Delaware confirmed this week that FTX’s top 50 creditors are owed a combined $3.1 billion. One individual is owed more than $226 million, while the rest of the top 50 had anywhere between $21 million and $203 million on the failed derivatives exchange. So, when can FTX creditors expect to get some of their money back? It could take years or even decades, according to insolvency lawyer Stephen Earel. FTX discloses its top 50 creditors are owed $3.1 billion. The largest creditor is owed $226 million.All names were redacted. pic.twitter.com/JGeddvMB7w— Tom Dunleavy (@dunleavy89) November 20, 2022FTX crisis leads to record inflows into short-investment productsBelievers in Bitcoin as a sound money alternative to the current monetary regime have used the latest market collapse to accumulate more BTC. But, for some institutional investors, the FTX collapse has triggered a new shorting opportunity. According to CoinShares, 75% of institutional crypto investments last week went to short investment products. In other words, they’re betting that Bitcoin and other crypto assets will see a further decline in price. BTC has already plunged to around $15,500, marking a new low for the cycle. Although Bitcoin can go much lower, we are nearing the end of the current four-year cycle. So, the bottom could be close.US senators urge Fidelity to reconsider its Bitcoin offerings after FTX blow-upFidelity Investments, one of the earliest institutional backers of digital assets, is being strongly urged by members of Congress to limit its Bitcoin investment offerings. This week, Senators Elizabeth Warren, Tina Smith and Richard Durbin once again called on Fidelity to reconsider its Bitcoin 401(k) product offering in the wake of the FTX disaster. “Since our previous letter [from July 26, 2022], the digital asset industry has only grown more volatile, tumultuous, and chaotic—all features of an asset class no plan sponsor or person saving for retirement should want to go anywhere near,” the senators wrote. The crypto skeptics can take their victory lap for now, but Bitcoin will get the last laugh. The implosion of FTX has made it clear that the digital asset industry has serious problems. I joined @SenWarren & @SenTinaSmith to urge Fidelity to do what is best & reconsider its decision to expose retirement accounts & employer-sponsored plans to these volatile assets. pic.twitter.com/qQn4PF80AP— Senator Dick Durbin (@SenatorDurbin) November 21, 2022

Before you go: Could Grayscale trigger the next Bitcoin price collapse?Concerns around Grayscale’s Bitcoin Investment Trust (GBTC) began to mount last week after the company refused to provide on-chain proof of its reserves. Now, investors are worried about whether Grayscale’s parent company, Digital Currency Group (DCG), could be forced to liquidate a portion of its GBTC to cover a massive hold in Genesis Global Trading’s balance sheet. What’s the relationship between DCG, GBTC and Genesis? In this week’s Market Report, Marcel Pechman and I discuss this relationship and why it matters to Bitcoin investors. You can watch the full replay below.[embedded content]Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

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How bad is the current state of crypto? On-chain analyst explains

Despite the market downturn and the widespread negative sentiment in the industry in the wake of the FTX collapse, on-chain data still show reasons to be bullish on Bitcoin. As pointed out by on-chain analyst Will Clemente, it’s enough to look at the long-term holders’s Bitcoin positions: they reached an all-time high despite their profitability being at an all-time low. “Long-term holders buy heavily into the bear market. They set the floor[…] and then those long-term holders distribute their holdings to new market participants in the bull market”, he told Cointelegraph in an exclusive interview. Another positive trend worth noticing after the FTX collapse, in Clemente’s opinion, is that the average crypto users are increasingly turning away from exchanges and taking self-custody of their own coins. According to Clemente’s analysis, that is shown by the increasing outflow of capital from exchanges to self-custody wallets and also by an increasing amount of supply held by entities holding between 0.1 and 1 Bitcoin. “By combining those two metrics, you get this picture of coins coming off exchanges into these custodial wallets for the average everyday retail person. And so I think that’s very positive”, he said. To find out more about the silver lining in the aftermath of the FTX collapse, check out the full interview and don’t forget to subscribe!

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Crypto lender Matrixport seeks $100M funding despite lending crisis

Matrixport, the cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing crypto market crisis.Lead investors have already committed $50 million for Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported on Nov. 25. The deal has yet to be finalized as Matrixport is still looking for investors for the other half of the round.We’re excited and look forward to engaging with participants, on similar terms, in the other half of the #funding round.Appreciate the trust and confidence our investors continue have in Team #Matrixport.@business https://t.co/DqQhsYucUy— Matrixport (@realMatrixport) November 25, 2022According to the company, the new round is part of Matrixport’s usual funding agenda. “Matrixport routinely engages with key stakeholders as part of its normal course of business, including investors keen to participate and enable our vision as a digital assets financial services provider,” the firm’s public relations head Ross Gan said.Matrixport’s new funding comes a year after the firm conducted a $100 million Series C funding round conducted in August 2021, becoming a unicorn with a $1 billion valuation.The fundraising was led by major global venture capital firms, including DST Global, C Ventures and K3 Ventures. Other contributors in the round included major industry investors like Tiger Global, Qiming Venture Partners, CE Innovation Capital and A&T Capital, alongside existing investors like Polychain, Dragonfly Capital, Lightspeed, IDG Capital and others.According to Bloomberg data, Matrixport handles $5 billion of trades each month and has tens of billions of dollars of assets under management and custody. The firm reportedly employs close to 300 people.Established in February 2019, Matrixport is one of the largest cryptocurrency lenders in Asia, offering a wide range of crypto services, including trading and custody. The company also offers cryptocurrency and stablecoin loans, as well as zero-cost loans with a 0% interest rate and liquidation protection.Matrixport is one of the few crypto lending platforms that appear to have not been affected by the ongoing crisis of cryptocurrency lending. As previously reported by Cointelegraph, some of the biggest crypto lending platforms including Celsius and BlockFi have faced major issues this year due to the ongoing bear market and the associated crisis of cryptocurrency lending.Related: Crypto lender Hodlnaut reportedly faces police investigation in SingaporeWu’s crypto company also said that it wasn’t too much affected by the ongoing FTX contagion, reporting a few issues due to the crash of Sam Bankman-Fried’s crypto exchange. On Nov. 11, Matrixport reported that 79 of its users suffered losses in the aftermath of FTX issues, adding that the affected products included the BTC Fixed Income Products and Victoria BTC Fund Products.“We would need to emphasize that Matrixport’s products are subject to strict segregation from one another so that a single impacted product will not affect the other products as the underlying asset and fund flow are segregated,” the firm stated.

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Binance says its Industry Recovery Initiative has 7 enrollees, 150 applicants

Binance announced Nov. 24 that it is spearheading the creation of a so-called Industry Recovery Initiative (IRI) on BloombergTV. New details about the project to “to lead the charge when it comes to protecting consumers and rebuilding the industry” have been released on the exchange’s blog. The company wrote:”As a leading player in crypto, we understand that we have a responsibility to lead the charge when it comes to protecting consumers and rebuilding the industry.”Binance has committed $1 billion to the fund at a public address, with an addition $1 billion to be added “in the near future if the need arises.” Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have committed an initial $50 million between them to participate in the fund. According to Binance, 150 other companies have also applied to participate. Introducing the Web3 Industry Recovery Initiative! #Binance and a number of key industry partners have joined together to commit $1B+ to provide financial support to the most promising and highest-quality companies that need it most.Let’s support industry growth together.— Binance (@binance) November 24, 2022The IRI is not an investment fund, the blog informs, but a “co-investment opportunity for organizations eager to support the future of Web3.” Participants that want to participate will be required to set aside committed capital in a public address. The fund may explore possibilities for traditional financial institutions to find an alternative commitment mechanism if they are unable to send money to a public address.

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Casper Association launches $25M grant to support developers on its blockchain

Scalable blockchain network Casper announced the launch of its new Casper Accelerate Grant Program on Nov. 23, created to support developers and innovators who are building apps to support infrastructure, end-user applications, and research innovation on its blockchain.JUST IN from @nextblockexpo: We’re glad to announce the launch of a $25M Casper Accelerate Grant Program. This fund will support learning, development, and innovations in Infrastructure, #dApps, #DeFi, #Gaming & NFTs.Learn more https://t.co/jClYyYxRVW pic.twitter.com/V8KszHEjM3— Casper (@Casper_Network) November 23, 2022The Casper Network is a Proof-of-Stake (PoS) enterprise-focused blockchain designed to help businesses to build private or permissioned apps, aimed at accelerating businesses and the adoption of blockchain technology. The network also boasts of solving the “scalability trilemma”, which revolves around “security, decentralization, and high throughput.” It also features upgradeable smart contracts, relatively lower gas fees compared to other Layer 1 blockchains, and developer-friendly features to make it easier for the protocol to evolve as businesses expand their use.To complement the launch of its grant program, Casper said it is creating a new digital portal to support developers and innovators on the network with practical tools and code, to help build their products. The developer portal is scheduled to go live in the first quarter of 2023. Related: zkSync developer Matter Labs raises $200M, commits to open-sourcing platformDespite being in a bear market, projects still appear to be raising and investing funds to improve the web3 ecosystem and the adoption of blockchain technology. On Nov 23, Cointelegraph reported that Onomy, a Cosmos blockchain-based ecosystem, raised millions from investors for the development of its new protocol; a project that seeks to merge decentralized finance (DeFi) and the foreign exchange market. On Oct. 18, Celestia Foundation also announced that it had raised $55 million in funding for building a modular blockchain architecture with the goal of solving challenges inherent to deploying and scaling blockchains. The company shared that it intends to build infrastructure that will make it easy for anyone with the technical know-how to deploy their own blockchain at minimal expense.

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DeFi protocol raises $10M from Bitfinex, Ava Labs despite turbulent market

The ongoing crypto bear market has proven itself to be a builders market as investments continue to find projects with promise.Onomy, a Cosmos blockchain-based ecosystem, just secured millions from investors for the development of its new protocol. The project merges decentralized finance (DeFi) and the foreign exchange market to bring the latter on-chain.According to the developers, the latest funding round garnered $10 million from big industry players such as Bitfinex, Ava Labs, the Maker Foundation and CMS Holdings among others. Lalo Bazzi, co-founder of Onomy, said the underlying goal of building a decentralized autonomous organization with a public infrastructure should serve the “core tenant of crypto — self-custody — without sacrificing on the user experience.”Both DeFi and self-custody have been hot topics in the crypto community due to the FTX liquidity-bankruptcy scandal. Some experts have said that one of the major lessons to take away from the situation is the value of DeFi platforms compared to centralized gatekeepers.Related: Bank for International Settlements will test DeFi implementation in forex CBDC marketsForecasts for the near future of the industry have shown a mixture of another tough year while still holding investors’ interest.According to a Coinbase-sponsored survey that was conducted between Sept. 21 and Oct. 27, institutional investors are still keen on the space. It revealed that 62% of surveyed institutional investors with crypto investments increased their positions in the past year.On Nov. 9, just days into the FTX scandal, Cathie Wood of ARK Investment added an additional $12.1 million to the company’s existing shares in Coinbase. Additionally, banks continue to show interest in the industry, with JP Morgan using DeFi for cross-border transactions and BNY Mellon launching its own Digital Asset Custody Platform.Still, some research predicts a continuation of tough conditions for the blockchain industry, which have the potential to last into the upcoming year.

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Crypto Twitter reacts to Binance CEO’s deleted tweet about Coinbase’s Bitcoin Holdings

Coinbase was trending on Twitter on Nov. 22 after Binance CEO Changpeng Zhao, known also as CZ, sent out a tweet that appeared to question Coinbase’s Bitcoin holdings.In the since deleted tweet, CZ referenced a yahoo finance article that alleged that “Coinbase Custody holds 635,000 BTC on behalf of Grayscale.” CZ added, “4 months ago, Coinbase (I assume exchange) has less than 600K,” with a link to a 4 month old article from Bitcoinist. The Binance CEO made it clear that he was simply quoting “news reports”, and not making any claims of his own. However, his tweet was not received well by the crypto community. A screenshot of CZ’s since-deleted tweet.Shortly after, Coinbase CEO Brian Armstrong indirectly responded to CZ in a series of tweets, stating; “If you see FUD out there – remember, our financials are public (we’re a public company),“ with a link to Coinbase’s Q3 shareholder letter. He clarified that his company holds “~2M BTC. ~$39.9B worth as of 9/30 (see our 10Q).”If you see FUD out there – remember, our financials are public (we’re a public company) https://t.co/ayzN0zaqgT— Brian Armstrong (@brian_armstrong) November 22, 2022CZ deleted his tweet shortly afterward, stating: “Brian Armstrong just told me the numbers in the articles are wrong. Deleted the previous tweet. Let’s work together to improve transparency in the industry.”Brian Armstrong just told me the numbers in the articles are wrong. Deleted the previous tweet. Let’s work together to improve transparency in the industry.— CZ Binance (@cz_binance) November 22, 2022

Given recent market events, and Binance’s perceived role in instigating them, some have called out CZ for the insinuations. To recap, FTX’S liquidation crunch, which led to an overall spiral in the market over the past two weeks, is believed by many to have been initially triggered by the Binance CEO after his tweets caused panic and a bank run on FTX.Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; “That latest tweet CZ made about Coinbase’s Bitcoin holdings that he just deleted wasn’t a great look. I get the argument that he’s trying to protect the industry but CZ is more than smart enough to know that exchange and custody wallets are separate.”That latest tweet CZ made about Coinbase’s Bitcoin holdings that he just deleted wasn’t a great look. I get the argument that he’s trying to protect the industry but CZ is more than smart enough to know that exchange and custody wallets are separate.— Will Clemente (@WClementeIII) November 22, 2022

Mario Nawfal, Founder & CEO of IBCgroup.io, shared on Twitter: “Is CZ implying Coinbase custody does NOT hold 1 to 1 BTC on behalf of Grayscale Trust???? See his latest tweet. This is a concern I never had til now. This is a VERY serious question (implied accusation?) to ask.”Is CZ implying Coinbase custody does NOT hold 1 to 1 BTC on behalf of Grayscale Trust????See his latest tweet. This is a concern I never had til now.This is a VERY serious question (implied accusation?) to ask.Will discuss this on the show and add points below — Mario Nawfal (@MarioNawfal) November 22, 2022

Analyst, trader, and investor @360_trader shared: “CZ just proved today he’s all about one thing… his empire. He IS NOT here to look out for the industry … he deleted the tweet… But now … as I already expected … He’s exposed himself as a villain.”CZ just proved today he’s all about one thing… his empire. He IS NOT here to look out for the industry … he deleted the tweet… But now … as I already expected … He’s exposed himself as a villain.— 360Trader (@360_trader) November 22, 2022

Trader and investor @BobLoukas called out CZ for his lack of due diligence before tweeting. He shared: “CZ ‘Let’s work together to improve transparency in the industry.’ Also CZ – Let me tweet to millions some random FUD in the middle of a bear market major liquidity event before maybe just reaching out to confirm.”CZ “Let’s work together to improve transparency in the industry.”Also CZ – Let me tweet to millions some random FUD in the middle of a bear market major liquidity event before maybe just reaching out to confirm. https://t.co/UA00hieJsC— Bob Loukas (@BobLoukas) November 22, 2022

Related: Binance CEO denies report firm met with Abu Dhabi investors for crypto recovery fundOn Nov 18, Cryptocurrency investment product provider Grayscale Investments shared that all digital assets that underlie Grayscale’s digital asset products are stored under the custody of Coinbase Custody Trust Company, LLC. Although the company has refused to provide on-chain proof of reserves or wallet addresses to show the underlying assets, citing “security concerns.” At the time of publication, Coinbase $COIN token had experienced a $5.3% increase in price. 

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