“Fight between freedom and authoritarianism” Crypto pros defend Binance
The biggest crypto news this week was the decision by the Securities and Exchange Commission (SEC) to sue Binance and Changpeng Zhao. As we wrote here, the SEC filed 13 charges, accusing the company of operating an unregulated exchange in the US and offering unregistered securities.
Crypto industry is standing by BinanceCopy link to section
As expected, cryptocurrency prices tumbled after the lawsuit as investors worried about the impact of the suit. Despite this, it seems like crypto investors and traders are standing with Binance and Changpeng Zhao.
The overall view is that the SEC is using its powers to target companies after the FTX debacle. A good way to look at this is the fact that there was no immediate major outflow from Binance as one would have expected. Instead, data by Cryptoquant shows that the balance in the company are increasing.
Further data by DeFi Llama shows that the outflows from Binance in the past 24 hours were less than $1 billion. Ordinarily, after such a big announcement, you would expect outflows to be bigger than that. The data shows that Binance has over $60 billion in assets, making it the biggest company in the industry.
Therefore, the immediate decline of cryptocurrency prices could be temporary as we saw in 2020 when the SEC sued Ripple. XRP price surged in 2021 and its price has been in line with that of other cryptocurrencies.
Justin Sun and Charles Hoskinson supports BinanceCopy link to section
Unlike during the FTX debacle, some of the biggest players in the crypto industry issued messages of support for CZ and Binance.
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In a long tweet, Justin Sun, who is also being targeted by the SEC, expressed his support for CZ, who he called a “honest and upright person.” Sun is the founder of Tron. He also encouraged him, saying that he was not alone and added that:
“As your friends, we will always be by your side, offering our unwavering support and encouragement. We believe that justice will be served, and we will face this challenge together.”
Meanwhile, Charles Hoskinson, the founder of Cardano, supported Binance. He argued that the lawsuit was further evidence of the “fight between freedom and authoritarianism.” He added that:
“An unelected group of people have decided that concepts like self-sovereign identity, owning your wallet, and the freedom to control your economic agency should be removed from the masses and given to the “enlightened” few.”
It is also worth noting that Binance has been in a battle for the most of its life, with platforms like the WSJ coming up with multiple hit pieces. Binance has always come out strong, thanks to its market share and its reputation among customers.