Coinbase CEO Confirms Exchange's BTC Holdings After CZ's Tweet

Coinbase CEO Brian Armstrong is reassuring users about the Nasdaq-listed cryptocurrency exchange’s financial health after a potentially damaging tweet — since deleted — from Changpeng Zhao (informally known as CZ), CEO of the largest cryptocurrency exchange in the world by volume, Binance.

See related article: Binance the winner of the FTX saga, ready to win more customers

Fast facts

  • In his already deleted tweetCZ cites a news report saying that Coinbase Custody, which provides crypto custody solutions to institutional investors, holds 635K BTC on behalf of a digital asset manager Grayscale. He ended the tweet by citing another news report from four months ago that said Coinbase had less than 600K BTC and said he “guessed” the second report was about the Coinbase exchange.

  • CZ’s tweet, which seemed to imply insufficient Bitcoin reserves at Coinbase, prompted Armstrong to a tweet that if anyone is experiencing FUD (Fear, Uncertainty, and Doubt), Coinbase’s financials are public for all to see, and that the exchange holds approximately 2 million BTC as of September 30.

  • CZ subsequently admitted that he had been informed by Armstrong that the numbers quoted in the article were wrong and he deleted his previous tweet, but not before drawing strong reactions from the Twitterati and Redditors.

  • Crypto analyst and investor @360_trader called out CZ’s tweet and subsequent deletion clown showwhile Will Clemente, co-founder of digital asset research firm Reflivity, said that while he gets CZ he’s trying to protect the industry, but tweeting and deleting is not a good look for Binance’s CEO and he’s smart enough to know the difference between exchange and custody wallets.

  • CZ’s past tweets are seen by many in the crypto industry as such instrumental in taking down former rival and now bankrupt crypto exchange FTX.

  • See related article: Binance Says It Will Create Crypto Recovery Fund, Industry Standards Group

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