CZ Responds to “4 Funny FUDs”: Key Takeaways

Former Binance CEO Changpeng Zhao addressed four major rumors circulating in the crypto community through a social media post, calling them "pretty imaginative" examples of fear, uncertainty, and doubt (FUD). 

CZ systematically debunked claims about a fabricated Polymarket bet, clarified his comments on Bitcoin's supercycle potential, explained Binance wallet balance changes, and defended the timeline for the SAFU fund's Bitcoin conversion.

What FUD Did CZ Address?

CZ's social media post came after several days of misinformation spreading across crypto platforms. The former Binance CEO took time to address each rumor individually, providing specific technical explanations and context that many initial reports omitted.

FUD refers to fear, uncertainty, and doubt, a tactic often used to spread negative sentiment about cryptocurrencies or exchanges. In this case, CZ identified four distinct pieces of misinformation that gained traction among crypto traders and community members.

Did CZ Really Make a $7 Million Polymarket Bet?

The first rumor involved a fabricated screenshot showing CZ allegedly placing a $7 million bet on Polymarket, a decentralized prediction market platform. CZ flatly denied the claim, stating the event "does NOT exist on polymarket, or any prediction market."

He offered to throw a cake in his own face if anyone could prove the bet existed. CZ also joked that he "might wear a helmet for selfies next time" to avoid further fabricated screenshots. Polymarket allows users to bet on real-world events using cryptocurrency, but this particular bet was completely invented.

What Did CZ Actually Say About Bitcoin's Supercycle?

The second piece of misinformation suggested CZ had "cancelled the supercycle" for Bitcoin. This misrepresented his actual comments during a weekend AMA session where he admitted feeling less confident about a multi-year bull run.

CZ clarified his position by stating:

• He said "I am less confident" than before, nothing more
• He does not have the power to cancel or create market cycles
• His reduced confidence stems from geopolitical turmoil and market conditions

A Bitcoin supercycle refers to a prolonged bull market that would break the traditional four-year cycle tied to halving events. CZ earlier predicted this ‘Supercycle,’ citing favorable U.S. regulatory changes and institutional adoption. However, Bitcoin's recent drop to $75,000 and nearly $2.5 billion in liquidations caused him to reassess this outlook.

Did Binance Sell $1 Billion in Bitcoin?

The third rumor claimed Binance itself sold $1 billion worth of Bitcoin, suggesting the exchange was dumping holdings. CZ corrected this by explaining that "Binance users sold $1b of bitcoin," not the exchange itself.

He clarified how exchange wallet balances work: Binance's wallet balance only changes when users withdraw funds. Most users keep their balance with Binance and use the platform as a wallet even after buying or selling. This means on-chain movements from Binance wallets typically reflect customer withdrawals, not the exchange's trading activity.

This distinction matters because exchange sales would indicate lack of confidence from Binance itself, while user sales simply reflect normal trading activity on the platform.

Why Hasn't the SAFU Fund Bought Bitcoin Yet?

The fourth rumor questioned why Binance's SAFU (Secure Asset Fund for Users) had not visibly purchased Bitcoin after announcing plans to convert the fund. CZ explained Binance committed to completing the conversion "over 30 days," not immediately.

He noted that the exchange likely planned to buy gradually over the 30-day period and move funds to the designated address at the end or on a weekly schedule. CZ also pointed out that Binance would use its centralized exchange for these purchases, not decentralized exchanges (DEXs), making the transactions less visible on-chain.

Regarding market impact, CZ provided specific math: $1 billion over 30 days represents only 0.002% of Bitcoin's $1.7 trillion market cap. He calculated this as "1/1700/30" and described it as "a gesture" rather than a market-moving event.

Conclusion

CZ's response to the four FUD rumors demonstrates the importance of verifying information in crypto markets. His clarifications addressed fabricated screenshots, explained exchange wallet mechanics, provided specific calculations on market impact, and outlined the SAFU fund's conversion timeline. 

The former Binance CEO ended his post by returning focus to "building," suggesting he considers these rumors distractions from productive development in the crypto space.

Resources

1. Changpeng Zhao on X: Posts (January-February, 2026)

2. Report by Bloomberg: Bitcoin Break Below $80,000 Signals New Crisis of Confidence

3. Report by CoinDesk: 'This is absolutely INSANE': Bitcoin’s weekend crash exposes the cracks beneath crypto’s latest boom

4. Report by CoinDesk: Binance moves 1,315 bitcoin into user protection fund as it prepares to buy $1 billion BTC