CEO of Bitcoin Base promises to fully support Bitcoin reserve, and CZ deletes suspicious tweets!

Nov 24,2022
CEO of Bitcoin Base promises to fully support Bitcoin reserve, and CZ deletes suspicious tweets!

The CEO of Coin Security released a tweet suggesting that the Bitcoin base may face some financial problems, but he quickly withdrew the tweet.

After Zhao Changpeng (CZ), the owner of the rival exchange, made a suspicious suggestion, Brian Armstrong, CEO of Bitcoin Base, calmed down his concern about his company's Bitcoin holdings on Tuesday.

The CEO of Yeon'an has deleted his tweet and promised to "work together to improve the transparency of the industry."

What does CZ say?

CZ's deleted post has attracted people's attention to two different opinions about the exact number of bitcoins held by the special currency base.

The first is the statement that Aaron Schnarch, CEO of Bitcoin Base Custody Company, said on Monday that the company holds 635,000 BTC on behalf of GBTC. In contrast, the second news was the headline four months ago, which stated that the Bitcoin Base Exchange held less than 600000 BTC.

"Just state the news report without making any statement," CZ said. "Glassnode may have more up-to-date data."

Concerns about the gray scale and Bitcoin base began to brew over the weekend after the former to refuse to realize the chain reserve certificate of its encryption assets, as well as some other centralized enterprises.

Transparency measures aim to ensure that creditors' deposits are fully supported, rather than being secretly mismanaged by FTX, which is now suspected of nonexistence.

Still, Twitter's crypto community thinks his suggestive tweets are both ignorant and unnecessary. For example, Messari founder Ryan Selkis pointed out that Bitcoin Base has passed financial audit and proved that it holds about 2 million Bitcoins.

The CEO of Yeon'an finally deleted this tweet and accepted the DM sent by Brian Armstrong to explain the same financial situation in detail.

"If you see FUD outside, remember that our finance is public (we are a listed company)," clarified Armstrong in a subsequent tweet. According to the documents provided by the CEO, his company holds about US $39.9 billion of Bitcoin by the end of the third quarter of 2022.

Compare Bitcoin Base and FTX

Sixteen days before CZ issued its statement, the tweet released triggered a bank run on FTX, leading to its rapid demise. Some people interpreted Monday's tweet as a deliberate attempt to defeat another competitor, although CZ denied this intention.

In the week when FTX collapsed, Brian Armstrong explained that Bitcoin Base's public audit and 1:1 support for customer assets could prevent it from going bankrupt like FTX. He said that Bitcoin Base had no exposure to FTT FTX and its sister company Alameda Research.

A few days before bankruptcy, Sam Bankman Fried, former FTX CEO, claimed that FTX 1:1 supported customer assets and strictly supervised GAAP audit. He has since removed the tweets that made these comments.

"If an exchange keeps users' assets unchanged, no matter how many tweets others have, it will not cause problems. Simple," said CZ last Thursday.