Binance Is Truly “Safe” Now As Cramer Takes U-Turn On Crypto Exchange

Cramer’s negative Binance stance boosts user confidence.

Binance CEO Changpeng Zhao joked that Binance is safe now in response to critical comments from CNBC Mad Money host Jim Cramer.

“Now we are safe!” CZ tweeted with a laughing emoji.

Now we are safe! ? https://t.co/mArKDthPpb pic.twitter.com/p0kuvvAVPQ

— CZ ? Binance (@cz_binance) December 16, 2022

Notably, moments before, Cramer had tweeted that he would rather keep his money in the sports betting platform DraftKings than on Binance.

I would trust my money more in Draftkings than i would binance

— Jim Cramer (@jimcramer) December 16, 2022

Unsurprisingly, crypto enthusiasts and Binance supporters are excited by the comment. This is because Cramer has built a reputation for consistently making wrong calls in the crypto and stock markets to the point that he has become a meme, and some traders actively countertrade him. Notably, Tuttle Capital is working on launching an inverse Cramer ETF.

Interestingly, just days before, the TV personality had asserted that Binance made him feel reassured. However, Cramer’s shifting stance may not surprise many, as the Mad Money host has often shifted his stance on crypto. For example, in April, Cramer said he was bullish on ETH and expected it to stage a 40% rally. However, that never happened, and he now maintains that there is no value in crypto.

Meanwhile, Cramer’s latest U-Turn may have been inspired by recent reports that Binance, KuCoin, and Crypto.com auditor Mazars has paused work for crypto clients. Notably, the Mazars report certifying Binance’s Bitcoin reserves as overcollateralized is no longer accessible, raising eyebrows about the proof-of-reserves of Binance and other exchanges which used the Mazars service.

The negative sentiment surrounding the market saw Bitcoin briefly trade below $17k. The leading digital asset is currently back above this price point but barely at $17,052, down 2.82% in the last 24 hours at press time.

It bears mentioning that within the week, Binance saw a surge in withdrawals fueled by fear, uncertainty, and doubt, as Reuters reported that the US Department of Justice was about to file criminal charges against the exchange. However, according to CZ, things have now stabilized. Furthermore, in a recent CNBC interview, he asserted that user deposits are reserved 1:1, and the exchange could process 100% withdrawals of all user deposits. 

Despite the Mazars drama, it is worth noting that CryptoQuant has verified Binance’s proof-of-reserves, saying it does not see any “‘FTX-Like’ behavior.”