In recent hours, the Binance exchange has been the victim of a series of worrying news that reported the closure by the police of an office in Shanghai, China, with many even linking the fall in the price of Bitcoin (BTC) to this story.
Nothing could be more false, these are the words of Binance CEO Changpeng Zhao, who stated that there was no law enforcement intervention and no raids, especially considering that Binance doesn’t have an office in Shanghai.
No police, no raid, no office. Hope you didn’t pay to read that FUD block. pic.twitter.com/W2msvY2hSA
— CZ Binance (@cz_binance) November 22, 2019
Moreover, the CEO has lashed out against the article in The Block, a newspaper that passed it off as a true scoop which, however, was nothing more than simple FUD.
FUD, an acronym for “Fear, Uncertainty and Doubt”, is a marketing strategy that aims to bring doubts and fears towards a particular company, by manipulating or inventing information and news about its operations in order to put it under the pressure of the media.
In this sector, it is very wise to first check the authoritative sources to be sure that it is not fake news.
The reactions of the industry’s main players
Following this event, several characters from the crypto world provided support to the CEO. These include the co-founder of the investment fund Morgan Creek, Anthony Pompliano who, in his commentary appears to be destroying the news (if not even the newspaper).
— Pomp 🌪 (@APompliano) November 22, 2019
Justin Sun of TRON also commented on the news, saying he wants to donate 100 BTC against the FUD.
I personally would like to donate 100 $btc to FUD fighting fund. 🚀
— Justin Sun (@justinsuntron) November 22, 2019
This is obviously a major damage to the image of Binance, as the news has set in motion a series of discussions and other articles on the subject. Perhaps the CEO CZ will decide to take legal action against The Block.
This newspaper, by the way, is not new to this kind of endeavours, given that many times it has targeted Bitfinex and the Tether case.