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, also known 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 stated 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 Bitcoinist article from 4 months ago. The Binance CEO clarified that he was merely quoting “news” and did not make any claims. However, his tweet was not received well by the crypto community.

A screenshot of CZ’s since-deleted tweet.

Soon 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 are a public company),” with a link to Coinbase Q3 shareholder letter. He clarified that his company holds “~2 million BTC. ~$39.9 billion as of 9/30 (see our 10Q).”

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

Given recent market events and Binance’s perceived role in instigating them, some have called out CZ over the insinuations. To recap, many believe that the FTX liquidation crisis, which has led to a general spiral in the market over the past two weeks, was initially triggered by the Binance CEO after his tweets caused panic and a bank run on FTP extension.

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

Mario Nawfal, founder and CEO of IBCgroup.io, shared on Twitter: “Is CZ implying that Coinbase Custody does NOT hold 1 to 1 BTC on behalf of Grayscale Trust???? See his latest tweet. This is a concern which I have never had until now.This is a VERY serious (implicit accusation?) question to ask.

Analyst, trader and investor @360_trader shared: “CZ just demonstrated today that they are focused on one thing… their empire. NOT here to look for the industry…he deleted the tweet…But now…as I already expected…he turned out to be a villain.”

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 millions of random FUDs in the middle of a major bear market liquidity event before contacting me to confirm.

Related: Binance CEO Denies Company Met with Abu Dhabi Investors for Crypto Recovery Fund

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