Binance CEO Chengpang Zhao (CZ) and Ripple CEO David Schwartz targeted a cryptocurrency exchange. According to the two CEOs, investors should stay away from Singapore-based crypto exchange Vauld. We have compiled the details for you.
Binance and Ripple CEO target crypto exchange Vauld
It all started when Binance CEO CZ reviewed Vauld on his Twitter account. CZ responded to an article about Vauld suspending cryptocurrency withdrawals. In his response, he warned against using platforms that require VC funding. Accordingly, Binance CEO believes that such companies do not offer a reliable business model. Actually, CZ’s post makes a lot of sense, as its biggest competitor, Coinbase, supports Vauld. Valar Ventures and Pantera Capital are among other big names backing Vauld. However, Ripple CEO also supported CZ’s sharing in a short time. Accordingly, David Schwartz shared a tweet that read “Rest in peace Vauld”. Thus, he mocked the current situation that the crypto exchange is experiencing.
Vauld is stopping its services
Earlier today, Vauld announced the suspension of all withdrawals, trading and deposits, citing market volatility. The platform blamed Terra’s collapse, Celsius’ suspension of withdrawals, and 3AC’s credit default for the crypto market’s decline. He then announced that since June 12, 2022, close to $200 million has been withdrawn. Thus, it came under the criticism of Binance and Ripple CEO.
It was noteworthy that the suspension of transactions was the exact opposite of the statements made by CEO Darshan Bathija last month. In a blog post, Bathija denied that they were affected by Celsius or 3AC. He then said that the company has the ability to remain liquid despite tough market conditions. Also, Vauld posted a blog announcing 3AC’s bankruptcy a month ago. However, Nansen.ai CEO Alex Svanevik explained that Vauld’s main account has multiple transactions with 3AC. However, Svanevik noted that interactions with 3AC occurred almost a year ago. Thus, he stated that 3AC operations do not affect Vauld definitively.
Stock markets that lost confidence
Vauld is the latest in a series of centralized exchanges to cease their services. Companies like Three Arrow Capital and Celsius have also suspended their services, citing the bear market. As a result, many voices oppose exchanges. As Cryptokoin.com reports, Lark Davis, a major crypto investor and influencer, asked his followers to withdraw their cryptocurrencies from centralized exchanges. Dennis Porter, CEO of Satoshi Act Fund, stated that even popular exchanges such as Coinbase should not hold assets. Accordingly, Porter argues that even the largest cryptocurrency exchanges are not safe.
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