- Verified Twitter user claims using BNB price as an indicator of solvency is erroneous.
- Mike Alfred added that BNB price only represents what Binance CEO wants.
- BNB trades at $256.94, gaining 4.4% in the last seven days.
Verified Twitter user, Mike Alfred argued that crypto enthusiasts using the current Binance Coin (BNB) price as a primary indicator of health and solvency are greatly mistaken.
Alfred asserted that the price of BNB merely represents what the CEO of Binance, Changpeng Zhao (CZ), wants to be seen until the next liquidity shock hits. The Binance critic also brought the account of the legendary The Big Short trade of Michael Burry and John Paulson in 2008.
Alfred did not provide proof when asked to bolster his argument with any reliable resource.
BNB currently trades at $256.94, gaining 4.4% in the last seven days. Last month, BNB touched one of its lowest prices after bad actors created fear, uncertainty, and doubt messages about the Binance exchange. The event caused crypto investors to withdraw over $3 billion from Binance within 24 hours.
Interestingly, the Binance CEO claimed on Twitter that the massive cashout was far from the top five highest withdrawals it has experienced and that they had processed more during the LUNA and FTX fiasco.
Zhao added that the FUD brought only a stress test upon the exchange, representing an avenue to show its credibility to the crypto community. In another Twitter thread, the CEO explained some of the motives of those spreading panic calls against the firm.
The Binance CEO argued that some crypto enthusiasts hate centralization in the Web3 space, regardless of how valuable the centralized exchange had been in promoting worldwide crypto adoption.