Changpeng Zhao Sparks Speculation About Bitcoin Seller
Changpeng Zhao, the founder of Binance, has ignited a flurry of speculation within the cryptocurrency community with a cryptic tweet posted on Tuesday. Zhao hinted that someone might be selling off their Bitcoin holdings, but refrained from revealing the individual’s identity.
The tweet quickly garnered significant attention, amassing thousands of comments from users eager to uncover the seller’s identity amidst the cryptocurrency’s ongoing price surge.
Community Suspects Michael Saylor
While many names have been thrown into the mix, one figure has emerged as a prominent suspect: Michael Saylor, the founder of MicroStrategy. This speculation stems from Saylor’s recent criticism of proof-of-reserves practices.
According to a study by Triple-A, over 560 million people worldwide invest in cryptocurrencies. Zhao’s tweet suggests that one of these investors is currently offloading their Bitcoin.
The tweet has already accumulated over 500,000 views and thousands of comments within a short period, highlighting the community’s intense interest in uncovering the seller’s identity.
“He probably sold bitcoins,” CZ wrote.
While the Grok AI suggests Mexican billionaire Ricardo Salinas, others believe CZ is referring to Michael Saylor, founder of Strategy.
Saylor has voiced his opposition to proof-of-reserves, particularly when questioned about whether MicroStrategy would disclose the addresses holding its Bitcoin. MicroStrategy currently holds 576,230 BTC.
“The current conventional way of publishing proof of reserves is an insecure form of proof of reserves,” Saylor stated. “In fact, it weakens the security of the issuer, the custodians, the brokers, and the investors.”
He further elaborated, arguing that publishing wallet addresses is akin to publicly disclosing sensitive personal information, which could compromise security.
“It’s not a good idea. It’s a bad idea. It’s like publishing the addresses, bank accounts, and phone numbers of all your children, thinking that this will somehow improve the security of your family. It doesn’t improve the security of your family. No institutional or corporate security analyst would think it’s wise to publish all the wallet addresses in a way that they can be tracked.”
Binance, in contrast, updates its proof-of-reserves monthly, which may have prompted Zhao’s speculation about Saylor’s potential Bitcoin sales.
However, as a publicly traded company, MicroStrategy would be obligated to disclose any significant Bitcoin sales to its shareholders, which weakens this theory.
Alternatively, Saylor could have sold his personal Bitcoin holdings. In 2021, Saylor claimed to own over 17,000 Bitcoins, but has not updated these figures since.
One user commented on Zhao’s tweet, suggesting that CZ was indirectly targeting Saylor due to his views on proof-of-reserves.
Saylor’s Stance on Proof-of-Reserves
Saylor has been vocal about his concerns regarding proof-of-reserves, arguing that it compromises security without providing concrete evidence of solvency.
“The problem with proof of reserves, the way it’s done today, is that, first, it’s just a proof of assets — which is insecure — and it’s not a proof of liabilities,” Saylor explained. “Therefore, if you really want security in crypto and you take it seriously, my suggestion is: buy Bitcoin and self-custody it.”
In 2024, Saylor clashed with the community by advocating for trusting banks and institutions with cryptocurrency custody, a stance that contradicts the principles of self-custody.
He now suggests that companies should engage auditing services from the “Big Four” firms to verify Bitcoin holdings and ensure they haven’t been lent out or otherwise encumbered.
Such reports would then be signed by the company’s CFO and CEO, holding them accountable for the information under the Sarbanes-Oxley Act.
“Publishing a simple wallet that can be tracked is just a magic trick of the crypto world.”
“I understand why people like it, and it might even seem interesting if you’re a broker,” Saylor continued. “But let me tell you what the real lesson you should learn from FTX and Mt.Gox is: don’t do business with unstable offshore brokers run by out-of-control kids.”
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