The crypto-verse is home to thousands of projects, while many of them enter the market with the intention of making use of technology to contribute to the growth of the ecosystem, a few others aim at extracting money from people. These scammy projects are sometimes wrongly endorsed by prominent personalities of the crypto industry, Binance’s Changpeng Zhao seems to be the latest one to join the list.
OKEx CEO Calls Out Binance For “Irresponsible Behaviour”
Malta-based cryptocurrency exchange, Binance has been touted as the world’s largest crypto exchange following the array of developments and partnerships, the platform dives into. However, Binance’s quick-wittedness seems to have caused a problem, suggests Jay Hao, the CEO of prominent crypto exchange, OKEx. Recently, in an array of tweets, the CEO of OKEx called out CZ for endorsing certain scammy DeFi projects.
In his tweets, Hao pointed out that Binance Smart Chain [BSC] was an extremely centralized platform. The platform’s venture, BakerySwap reportedly caused protests across China and other places for collapsing in less than 12 hours. He tweeted,
1/Reminder to be careful when farming on Binance Smart Chain. As I said, it's managed by only one team & is not decentralized. Built on #BSC, #BakerySwap caused huge losses for many retail investors <12h after mining began, which led to protests against BSC in China & elsewhere. https://t.co/BVvXeANN2s
— Jay Hao @OKEx (@JayHao8) September 15, 2020
The DeFi boom is hard to miss, with several platforms pouring into space. Binance hopped onto the DeFi bandwagon by listing several DeFi tokens. Binance was quick enough to list SUSHI and Hao criticized Zhao, CEO, for doing so.His tweet read,
“Those financial losses are a result of blind trust in #Binance. Despite @heyibinance’s claims that projects on BSC must pass all security audits, $BAKE still plunged leading @cz_binance to delete his BakerySwap endorsement tweet ytd just like he did with #SushiSwap previously.”
Furthermore, labeling Binance’s latest move as “irresponsible” indicated that it depleted the trust of the crypto community and damaged DeFi ‘s reputation. Ironically, OKEx listed SUSHI on the same day as Binance. Hao added,
“Trust is hard to build but easy to tear down. For the sake of users’ interests & #Crypto development, pls stop these tricks and #BUILD the real #DeFi.”
Additionally, the DeFi space was seen recovering from its latest slump, despite the crackdown of several faulty projects. At the time of writing, a total of 9.36 billion USD was locked in the DeFi space with Uniswap prolonging its dominance by 19.10%