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In what might well be one of the most bizarre and comic interactions on Twitter, Binance's CEO Changpeng Zhao (CZ) has refused an endorsement from Jim Cramer, fearing the absolutely karmic "inverse Cramer" curse.
Our regular readers are well aware of Jim Cramer's tendency to reflect the consensus view in the market – one that does not usually allow for market-beating returns. So profound has been the CNBC anchor's tendency to parrot the "known-known" view that a dedicated ETF is now in the works to flip Cramer's recommendations, allowing investors the opportunity to generate some much-needed alpha. In fact, IndexOne's virtual inverse Cramer index – dubbed the i1 Inverse Cramer – is currently up a whopping 31.61 percent so far this year, while the S&P 500 index is down 16 percent.
Do you feel as reassured by Binance as i do?
— Jim Cramer (@jimcramer) December 14, 2022
Coming back, Jim Cramer recently tweeted that he feels "reassured by Binance."
Oh Jim, please don't use Binance, for the sake of everyone else. 🙏🙏🙏
half joking 😂
— CZ 🔶 Binance (@cz_binance) December 14, 2022
In response, CZ then quipped that Jim Cramer should not use Binance "for the sake of everyone else."
Of course, the past few days have not been easy for the embattled exchange, as we noted yesterday. First, Binance had tasked Mazars to perform an "audit" of its reserves. The auditor's press statement, however, flagged the limited nature of its engagement with Binance, one that precluded the process of obtaining any actual "evidence" that would have allowed the auditor to form an opinion. Significantly, Binance's proof-of-reserves attestation glossed over the exchange's liabilities.
Then, Reuters reported that Binance might be charged by the US Department of Justice in a money laundering investigation that began in 2018. To make matters worse, the exchange halted the withdrawal of USD Coin (USDC) for a brief period of time yesterday as part of a coin swap with Paxos. However, this action created a fierce wave of panic among investors, resulting in large outflows from Binance.
As per the tabulation by DeFi Llama, Binance has experienced a net outflow of over $2 billion over the past 24 hours. Moreover, its Total Value Locked (TVL) metric has now declined to $59.91 billion from over $66 billion on the 11th of December.
Things seem to have stabilized. Yesterday was not the highest withdrawals we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in. 🤷♂️💪 https://t.co/WLK2KyCym0
— CZ 🔶 Binance (@cz_binance) December 14, 2022
Nonetheless, after the frenzy of yesterday, things appear to have calmed down now, as per a recent tweet by Changpeng Zhao (CZ).
Do you think there is a material possibility that Binance could still go down? Let us know your thoughts in the comments section below.
