This week, Binance was accused of shutting down their Shanghai office after a police raid. Changbeng Zhao, CEO of Binance has been adamant about the reports being rumors, and now he has doubled down by joining a fund to fight “FUD.” It started with a tweet from Zhao suggested when raising funds for a crypto project, to put aside funds to fight “FUD,” to which Justin Sun responded that he would donate 100 BTC to the cause.
I personally would like to donate 100 $btc to FUD fighting fund. 🚀
— Justin Sun (@justinsuntron) November 22, 2019
CEO of the Block, Mike Dudas responded to the thread, saying,
“Two of the wealthiest men in cryptocurrency plan to raise a “FUD fighting fund” worth more than $1 million, presumably to wield as an implicit threat against journalists who report facts that run contrary to their business interests.”
Zhao’s usage of the term FUD refers to news that triggers fear, uncertainty and doubt. In the crypto space, saying FUD can be interchangeable with the term “fake news” which can either be derogatory and dismissive towards a journalist’s work, or genuinely imply that their analysis is false.
Starting a fund to combat journalism is controversial because it is unclear where that money would go. Two obvious methods of combatting the press are to either bribe them not to print a piece, bribe other media outlets to print contradicting pieces, or to bribe contradicting sources to make statements.
The Block originally reported the story about police raids , and has since noted that new sources have come out saying that raids never happened. Still, Zhao persists that there is no, and has never been a Shanghai office even though The Block claims to have seen photos of it.
“No police, no raid, no office. Hope you didn’t pay to read that FUD block.” – Changpeng Zhao
Binance FUD fund UPDATE:
Zhao announced on Twitter that they will sue The Block. This is likely what he was referring to needing the FUD funds for.