In a recent tweet, the CEO of the world’s leading cryptocurrency exchange, Binance, emphasized the potential profits that BNB brings to its holders. While a tweet of the kind might appear to be positive and encouraging, it’s also worth noting that it could have an impact on BNB’s price, given Zhao’s influence on the community, hence making the entire thing rather questionable. After all, we’ve witnessed prominent CEOs getting sued for propping up the value of their companies. The question is how long will it take until the crypto industry is held under the same scrutinous standards?
CZ Emphasizes The Value of Holding BNB
It’s safe to say that Binance Coin (BNB) has seen better days. Over the past few months, the cryptocurrency lost almost half of its value, plummeting from its all-time high of around $40 in June to where it currently trades at $21.
Interestingly enough, the decrease comes amid seemingly massive developments for Binance and its ecosystem in general. Yet, all of this seems to have no impact on investors.
Among all that, the CEO of Binance, Changpeng Zhao, posted a seemingly controversial tweet today, “warning” people that not holding BNB could be a bad play.
I asked this on Dec 8, 2018, when #BNB reached a low of $4.22. We kept on building, never doubted it. Launchpad released in Jan.
And now, we continue to #buidl, more ferocious than ever. I want to ask this question again.
In the future, don’t say I didn’t tell you. https://t.co/075HkWgqMi
— CZ Binance (@cz_binance) September 14, 2019
While the majority of the text seems like a simple recollection of BNB’s glory days, the last sentence is questionable, to say the least.
After pointing out BNB’s surge, Zhao said: “In the future, don’t say I didn’t tell you.” While subjected to interpretation, this sounds awfully lot like a warning that not holding BNB is a bad choice. Moreover, interpreted at large, it could also sound like a piece of financial advice. Needless to say, this line of expression is completely unacceptable in traditional financial markets and we’ve already seen the consequences of it.
Standards Are Not The Same
While a lot of the cryptocurrency proponents are urging for regulatory clarity and definitions, it appears that the standards applied for traditional financial markets and for the crypto world are a tad bit different, to say the least.
Back in August 2018, Elon Musk, a person who’s considered to be one of this century’s visionaries, as well as CEO at SpaceX, co-founder, and product architect at Tesla Inc, and a whole lot of other ventures, got into a legal storm with the SEC over a tweet.
Musk said that he’s considering to take Tesla private and that he had secured the funding necessary for it. Back then, he was also a Chairman of the company.
The SEC took measures immediately, pressing charges against the entrepreneur. Despite voicing his disagreements, Musk settled, agreeing to pay a $20 million fine, to step off as a chairman of Tesla, and to get pre-approval for his tweets from the company’s legal counsel.
In other words, the US SEC does take social media behavior seriously. And it probably should. Apart from being major shot-callers at their respective companies, a lot of the rich and famous CEOs, including Changpeng Zhao, for that matter, have a serious social media following.
Zhao, for instance, has over 429,000 followers on Twitter. Hence, it’s only natural that his opinions would have some sort of influence over the people who read them. As such, it’s questionable at best to use this platform to give any sort of financial advice, let alone one that would impact the price of an asset that his company created.
Of course, it’s worth noting that Zhao is far from being the only one doing so, even subtly. Justin Sun, TRON’s founder, is perhaps the best example of such behavior.
After all, we haven’t seen Jeff Bezos directly propping up Amazon’s stock, have we?
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