Binance CEO Takes A Dig At Vauld, Here’s Why

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Binance’s CEO Chengpang “CZ” Zhao took to Twitter to take a dig at Vauld, a Singapore-based crypto exchange and lending platform. 

Replying to an article about Vauld’s suspension of withdrawals, CZ cautioned against using platforms that require VC funding. He believes that such companies do not have a reliable business model. 

CZ’s dig makes a lot of sense since one of the companies backing Vauld is Binance’s competitor, Coinbase. Peter Thiel’s Valar Ventures and Pantera capital are other big names backing Vauld.

Ripple’s CEO David Schwartz also mocked Vauld with a “RIP Vauld” tweet.

Vauld Halts Its Services

Earlier today, Vauld issued a corporate statement disclosing the suspension of all withdrawals, trading, and deposits on their platform, citing market volatility. The platform blamed Terra’s collapse, Celsius’s suspension of withdrawal, and 3AC’s loan default for the decline of the crypto market. It disclosed that close to $200 mln has been withdrawn since the 12th of June, 2022. 

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The suspension is in stark contrast to the statements made by their CEO, Darshan Bathija, last month. In a blog post, Bathija denied any exposure to Celsius or 3AC and affirmed the company’s ability to be liquid despite the harsh market conditions. Moreover, CEO, Alex Svanevik, revealed that Vauld’s main account had a lot of transactions with 3AC. Vauld also posted a blog revealing 3AC’s insolvency a month ago. 

Svanevik did however point out that the interactions with 3AC happened almost a year ago, and do not necessarily point to exposure. 

Exchanges Losing Trust

Vauld is the latest in a series of centralized exchanges that have halted their services. Companies like Three Arrow Capital and Celsius have also suspended services citing the bear market. As a result, many voices are speaking out against exchanges. 

Lark Davis, a major crypto investor and influencer, firmly asked his followers to get crypto off centralized exchanges. Dennis Porter, the CEO of Satoshi Act Fund, cautioned against storing any measurable crypto in exchanges, even in popular ones like Coinbase.

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a fim believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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