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


Coinbase trended on Twitter on November 22 after Binance CEO Changpeng Zhao, also known as CZ, sent a tweet that appeared to question Coinbase’s bitcoin holdings.

In the since-deleted tweet, CZ referenced a yahoo finance article that claimed “Coinbase Custody holds 635,000 BTC on behalf of Grayscale.” CZ added: “4 months ago Coinbase (I assume exchange) has less than 600K,” linking to an article from 4 months ago from Bitcoinist. Binance’s CEO made it clear that he was merely citing “news reports” and not making any claims of his own. However, his tweet was not received well by the crypto community.

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 owns “~2 million BTC. ~$39.9 billion in value as of September 30 (see our 10Q).”

CZ deleted his tweet shortly after, saying, “Brian Armstrong just told me the numbers in the articles are wrong. Delete the previous tweet. Let’s work together to improve transparency in the industry.”

Given recent market events and Binance’s perceived role in instigating them, some have called CZ out for the insinuations. To recap, the FTX liquidation crisis that led to an overall market spiral over the past two weeks is believed by many to have been initially triggered by Binance’s CEO after his tweets caused panic and banking on FTX.

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

Mario Naufal, founder and CEO of IBCgroup.io, shared on Twitter: “Is CZ implying that Coinbase Trust does NOT hold 1 to 1 BTC on behalf of Grayscale Trust???? Check out his latest tweet. It’s a worry I’ve never had before. This is a VERY serious question (implied accusation?) to ask.’

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

Trader and investor @BobLoukas called out CZ for their lack of due diligence before tweeting. He shared: “CZ “Let’s work together to improve transparency in the industry.” Also CZ – Let me send millions of random FUD in the middle of a big liquidity bear market event before maybe just reaching out to confirm .”

Related: Binance CEO denies reports firm met with Abu Dhabi investors for crypto recovery fund

On Nov. 18, cryptocurrency investment product provider Grayscale Investments shared that all digital assets underlying Grayscale’s digital asset products are held in the custody of Coinbase Custody Trust Company, LLC. Although the company declined to provide on-chain proof of reserves or wallet addresses to show underlying assets, citing “security concerns.” Coinbase’s $COIN token has seen a $5.3% increase in price at press time.