Cathie Wood and OKX’s founder weigh in, citing a Binance software glitch, forced deleveraging, and lasting industry damage amid a $900B market cap drop.
Crypto Twitter has once again revived its frustration with Binance and its former chief executive, months after the exchange allegedly caused a market slump during the unforgettable 10/10 liquidation event.
Over the past five days, Changpeng Zhao has been labeled a “fraud” and “worse than SBF” on several social media platforms. Although the ex-Binance CEO believes the attacks are fear, uncertainty, and doubt (FUD) driven, retail traders are undoubtedly frustrated by the mere fact that the market has not recovered from what happened last October.
It all began when Zhao posted a message on X last weekend, in which he argued that most trading strategies fail to beat a simple buy-and-hold method. In the eyes of the crypto community, his remarks have entirely overlooked the current reality.
Bitcoin is down by a whopping 25% in the last 3 months and is now trading at $82,000, according to CoinGecko. October 10 was the last time the coin was changing hands above $120,000.
Moreover, according to price charts for tokens listed on Binance in 2025 and 2026, more than 90% of 221 Alpha-listed projects are far below their post-listing highs. That perceived disconnect has made traders lose their trust in Binance listings and what Zhao says.
“CZ I held all the tokens listed on Binance last year. Please advise,” one trader wrote, mocking the former Binance’s head advice.
Zhao addressed the criticism in a follow-up post on Thursday, boasting that “FUD doesn’t hurt his target,” and “his followers increased.” He continued, saying that FUD damages the entire crypto market, and insisted that neither he nor Binance sells tokens in significant amounts.
“I/Binance do not sell in any meaningful amounts. My selling = I swipe my card, and $5 worth of BNB gets converted/sent to the coffee shop. I don’t run Binance anymore, but based on what I know: Binance only converts a portion of its revenue to pay for expenses. They are a large net hoarder,” he explained.
Zhao also said Binance is under the scope of regulators worldwide, who can review every trade on every account. “Don’t be misinformed. Use your energy on positive improvement for yourself,” the Binance co-founder concluded.
On Wednesday, OKX founder Star Xu wrote that “people had underestimated the impact of the 10/0 incident,” also saying it “caused real and lasting damage to the industry.” The total crypto market capitalization has fallen by more than 20% since the doomsday, dropping to around $3.2 trillion at the time of this publication.
Binance reported paying about $283 million in compensation caused by de-pegging incidents and related issues. The company said the most severe technical problems happened after prices had already bottomed, and that more payouts were planned for verified losses.
However, Xu believes Binance caused the volatility by supporting profit takers, insider trading, and Ponzi crypto schemes. Though he did not mention any names in his critique, it was clear to Crypto Twitter that Binance was the platform he was talking about.
“Some chose to pursue short-term gains, launching Ponzi-like schemes, amplifying a handful of ‘get-rich-quick’ narratives, and directly or indirectly manipulating the prices of low-quality tokens, drawing millions of users into assets closely tied to them. This has become their shortcut for attracting traffic and user attention,” the OKX founder claimed.
In a recent interview with Fox Business, ARK Invest CEO Cathie Wood revisited the October 10 turmoil. Wood said the ecosystem has been dealing with aftershocks from the forced deleveraging event for the past two to three months.
She estimated that the unwind erased $28 billion from the industry, and linked the episode to a technical issue at Binance. “October 10th was, what in the crypto world…is the flash crash associated with a software glitch on Binance that deleveraged the system,” she surmised.
In a now-deleted X post, Binance CEO Yi He responded to Wood’s sentiments, saying, “Cathie Wood isn’t a Binance user. We don’t serve US Individuals or entities. No offense.”
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