Jim Cramer, the host of CNBC’s “Mad Money”, has taken digs at Binance in his latest tweets on Friday. Cramer claimed the world’s largest cryptocurrency exchange by trading volume, Binance, lacks “real legitimacy” following the astonishing collapse of its largest competitor.
Jim Cramer Lambastes Binance
Jim Cramer has once again taken to Twitter to criticize crypto exchange Binance.
The famous CNBC broadcaster asked his myriad Twitter followers why there are no analysts who admit that most cryptocurrencies have no value whatsoever. Along these lines, he says they should also publicly acknowledge that Binance has “no real legitimacy” after the fall of FTX.
The FTX fiasco is going down as one of the most riveting corporate frauds in living memory. It was uncovered that financial troubles at Alameda research put a series of events in motion that eventually led to FTX’s insolvency, with former CEO Sam Bankman-Fried secretly using customer funds to bail out the exchange’s affiliate trading firm. The spillover effects of FTX’s implosion have wreaked havoc across the crypto industry and partially contributed to the recent market downturn.
Notably, Cramer is notorious in the cryptosphere for giving stock and crypto tips that typically end up being widely off the mark or the complete opposite of his prognosis. Given his track record, Cramer’s pessimism about Binance is not in the least bit disquieting, as one person responding to the CNBC host’s tweet observed.
This is not the first time Cramer is slamming Binance. In another tweet, he said he would trust having his money in the sports-betting platform DraftKings more than in Binance.
Binance Proof-Of-Reserves Auditor Mazars Cuts Ties With All Crypto Firms
The crypto market experienced a sharp drop today after French audit firm Mazars, which recently did Binance’s proof-of-reserves report, paused all work for global crypto clients.
Mazars discontinued its website dedicated to crypto audits, therefore Binance’s PoR report showing the giant exchange’s bitcoin reserves were overcollateralized no longer exists. Per a Bloomberg report, the auditing firm said it had halted work with crypto firms owing to signs that the market hasn’t been reassured by its proof-of-reserves reports.
In recent days, Binance has seen customer withdrawals worth over $3.5 billion as customers rush to take direct custody of their crypto coins.