Binance co-founder Changpeng Zhao (CZ) took to social media platform X to address a series of allegations circulating over the past few days, refuting each claim point by point. He denied rumors that Binance had dumped $1 billion worth of Bitcoin, causing the market downturn, rejected the notion that his personal remarks had "canceled the supercycle," and clarified speculation around the status of Binance’s Secure Asset Fund for Users (SAFU) conversion plan.
Meanwhile, platform tokens from major crypto exchanges have demonstrated resilience amid market volatility. For example, Gate’s platform token GT saw gains in the 24 hours leading up to February 3, trading at $8.24, reflecting the market’s equilibrium as it digested recent news.
01 Rumors Swirl
The weekend turbulence in the crypto market once again provided fertile ground for rumors. Speculation and accusations targeting Binance and its founder CZ quickly gained traction across social platforms.
The primary allegation was that "Binance sold $1 billion worth of Bitcoin," which was cited as the key reason for Bitcoin’s price dropping below $75,000.
Next came the misinterpretation of CZ’s personal comments. CZ had stated that his confidence in the crypto market’s "supercycle"—a long-term price surge driven by mass adoption and macro trends—was "not as strong as before."
Some market participants dramatically twisted this personal view, claiming he had "single-handedly canceled the supercycle."
A third focal point centered on Binance’s SAFU fund conversion plan. Last week, Binance announced its intention to convert its $1 billion user protection fund from stablecoins into Bitcoin.
After the announcement, the community began to question whether the commitment was being fulfilled, as no large on-chain purchases were immediately observed.
Additionally, a doctored screenshot from the prediction market platform Polymarket began circulating. It suggested that "someone might throw something at CZ’s face at a crypto event in 2026" and claimed that the prediction contract had $7 million in trading volume.
02 CZ Responds Point by Point
As the rumors intensified, CZ publicly posted on February 3, addressing what he called "quite imaginative" FUD one by one.
Regarding the "Bitcoin sell-off" accusation, CZ clarified that the observed trades were actions taken by Binance platform users, not by Binance itself. He explained, "Binance wallet balances only change when users withdraw funds."
He emphasized that many users prefer to keep assets in their exchange accounts, essentially using Binance as a wallet. As a result, user trading activity directly impacts the overall wallet balance shown on the exchange.
On the "supercycle cancellation" joke, CZ responded with humor. He quipped, "If I had that kind of power, I wouldn’t be arguing with you guys on Crypto Twitter."
He reiterated that he was merely expressing a slight personal shift in perspective, nowhere near "canceling" any market theory.
Addressing doubts about the progress of the SAFU fund conversion, CZ provided a clear explanation and timeline. He stated that Binance plans to complete the $1 billion BTC purchase gradually within 30 days, likely in batches.
He specifically noted that market observers "won’t see them buying via decentralized exchanges (DEX)," since Binance, as the world’s most liquid centralized exchange (CEX), would execute purchases through its own channels.
Subsequent updates indicated that Binance completed its first $100 million BTC purchase on February 2. CZ added that this $1 billion allocation would have limited impact on Bitcoin’s approximately $1.7 trillion market cap, serving more as a signal of confidence.
As for the controversial prediction market screenshot, CZ directly confirmed it was fabricated, stressing that such an event does not exist on Polymarket or any other platform, and that the claimed $7 million trading volume was entirely fictitious.
03 Why Is FUD Surging Now?
The current wave of FUD targeting Binance and CZ is not an isolated incident; its timing is closely tied to the prevailing market environment and historical context.
The market is at a sensitive technical juncture. Bitcoin experienced a notable correction at the end of January, and the weekend drop heightened market anxiety, prompting a search for explanations behind the price swings.
In this climate, any information related to large trades or comments from key figures tends to be magnified and overanalyzed.
A deeper cause traces back to the "flash crash" on October 10 last year. That dramatic market event triggered the liquidation of roughly $19 billion in leveraged positions and had a lasting impact on liquidity.
To this day, some voices in the crypto community blame Binance for that incident. The current spread of FUD is, in part, a continuation and backlash of those historical accusations.
Moreover, Binance itself is at a pivotal moment. After reaching a massive settlement with US authorities last year, with CZ stepping down as CEO and serving time, Binance’s role and influence in the industry remain under close scrutiny.
Any announcement regarding its fund movements or strategic shifts is prone to overinterpretation and speculation.
04 Rational Market Response and Resilience
Although rumors briefly stoked market concerns, investors have returned to rationality as accurate information emerged, and the market has shown underlying resilience.
Among major trading platforms, Gate’s platform token GT serves as a case in point. After a period of volatility, GT rose 3.26% in the 24 hours ending February 3, reaching $8.24.
This steady performance coincided with the market’s gradual digestion of FUD, indicating that investor sentiment is not entirely dictated by isolated rumors.
According to Gate Research Institute’s previously published 2026 outlook report, Bitcoin’s ownership structure continues to concentrate among large institutions and professional custodians. This structural evolution enhances overall market stability, making it more resistant to short-term sentiment swings and rumors.
Looking long term, the fundamental drivers of crypto asset prices remain technological progress, adoption rates, and macroeconomic conditions.
As CZ’s comments on the "supercycle" reveal, the market’s long-term thesis is not swayed by one person’s remarks; it is built on a much stronger and broader foundation.
For everyday investors, this episode underscores the importance of cross-verifying information through reliable channels and maintaining independent judgment in the noisy crypto market. Platforms like Gate, which are committed to providing secure and transparent trading environments, demonstrate their value in this process.
Outlook
Industry leaders have clearly refuted misinformation, and the market is returning to its core fundamental narrative.
As of February 3, Bitcoin’s price has stabilized. After a period of turbulence, Gate’s platform token GT closed at $8.24, up 3.26% over 24 hours. This may signal that the market is filtering out the noise and refocusing on the underlying logic that drives long-term value.
