CZ Shuts Down Binance Proof of Reserves FUD: Details

Changpeng “CZ” Zhao, founder and former CEO of Binance, has addressed concerns about the proof-of-reserves of the trading platform. In a post on X, CZ responded to claims that Binance was deliberately delaying the publication of its proof-of-reserve report four days into the new month.

Zhao Say ‘No Cause for Alarm on Proof-of-Reserve’

Zhao dismissed the claims as an attempt to spread fear, uncertainty, and doubt (FUD) in the ecosystem. He clarified that ‘Binance usually takes a few days to publish. Usually on the 5th or 6th.’

The former Binance CEO is effectively stating that the concerns raised were merely an attempt to spread misinformation or an overreaction. According to him, it is a snapshot of the account balance taken on the first day of the month.

Thereafter, the team takes the time to review the results before publishing them a few days later, usually on the fifth or sixth of the month.

CZ emphasized that this has always been the norm with Binance by telling the critic to ‘Check the history properly.’ He called on the critic, trying to raise FUD, to do their research before spreading doubts in the ecosystem.

Zhao’s reply has been acknowledged in the Binance community, as some users appreciated his clarification. Others opined that CZ should not have replied to the critic, as he was merely seeking attention to gain recognition.

CZ’s Advocacy for Binance and Crypto

However, the engagement is consistent with Zhao, who regularly shares updates to clarify issues related to the Binance ecosystem. Recently, when Nano Labs raised $500 million in a debt offering to buy Binance Coin, CZ highlighted the importance of the move.

He noted that Nano Labs has become a BNB-only strategic reserve public company, signaling a bullish move for the asset.

Zhao has been playing an active PR role for Binance and the broader cryptocurrency industry of late. For instance, he recently called out a comment declaring Ripple and Bitcoin dead.