Coin Edition -
- Binance critic Adam Cochran issues his final FUD warning on the exchange.
- He shared three critical points for those who remained on the fence.
- One of the highlighted risky practices involves TUSD and compliance.
In a recent tweet, the renowned Binance critic Adam Cochran released what he called his last round of FUD attacks on Binance. Cochran called the piece his last warning against the exchange, believing he has convinced enough people about the risk associated with using Binance.
Yet, he shared three critical points for consideration for those who remained open-minded, noting the exchange takes unnecessary risks with no foreseeable benefit.
1/12Here’s my last piece of Binance FUD because I think I’ve convinced just about everyone I can.But, if you are still on the fence or even just open minded, I’d like you to consider three statements that even my critics will agree with:— Adam Cochran (adamscochran.eth) (@adamscochran) October 15, 2023
First, he raised concerns about Binance’s use of TrueUSD (TUSD) stablecoin in promotions or as collateral, arguing that TUSD is not ideal collateral due to its low volume and limited usage. Besides, Cochran pointed out that TUSD is a project under the control of Justin Sun, the founder of TRON (TRX), a person he considers a controversial figure.
Furthermore, the critic highlighted that Binance’s U.S. sister arm has been reluctant to comply with U.S. courts regarding providing proof of asset custody. Therefore, Cochran pondered why Binance would undertake the mentioned risk endeavors, being the crypto market’s largest and most profitable exchange.
Also, Cochran raised questions about Binance’s involvement in small markets with geopolitical risk. He cited the offloading of the Russian market to a Binance Cloud project and the presence of accounts associated with SDN-flagged individuals. Besides, he mentioned the exchange’s supposed resistance to audits in U.S. courts.
According to Cochran, the highlighted risks do not appear to benefit Binance‘s business significantly. He called on market participants to question why the exchange is taking such risks.
Cochran concluded by encouraging users to consider the security of their assets. The critic suggested that storing assets off Binance does not cost anything, but the potential risks associated with the platform could be substantial.
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