In a dramatic escalation of public tensions between cryptocurrency exchange giants, Binance founder Changpeng "CZ" Zhao announced a pivotal Ask Me Anything (AMA) session to directly confront what he termed competitor-driven "Fear, Uncertainty, and Doubt" (FUD). This move comes as a direct response to scathing public criticism from OKX founder and CEO Star Xu, who blamed a rival "industry-leading company"—widely understood to be Binance—for inflicting "real and lasting damage" on the crypto industry's credibility following the market dislocation of October 10, 2026.
Star Xu's critique, delivered via a post on X, framed the October 10 event as a fundamental trust shock rather than a routine volatility episode. While not naming Binance or CZ directly, the context made the target clear. Xu argued that leading platforms should prioritize resilience and legitimacy, especially amid rising regulatory scrutiny. "An industry-leading company should focus on strengthening core infrastructure, building trust with global users and regulators, and protecting the long-term interests of the majority of crypto users," Xu wrote. He accused some of pursuing short-term gains by "repeatedly launching Ponzi-like schemes, amplifying a handful of 'get-rich-quick' narratives, and directly or indirectly manipulating the prices of low-quality tokens."
The October 10 flash crash serves as the central flashpoint. Market data indicates an 8-12% decline in total market cap within 24 hours, with aggregate liquidations estimated between $800 million and $1.2 billion. Bitcoin (BTC) dropped 7-9%, while Ethereum (ETH) fell 9-11%. An X account, CryptosRus, cited an interview with Ark Invest's Cathie Wood describing the subsequent "2–3 months" as an "aftershock" from the crash, which she tied to "a Binance software glitch" that "forced ~$28B of deleveraging across crypto."
In response, CZ announced a public AMA for January 30, 2026, explicitly stating his intention to address FUD from "self-proclaimed competitors." He referenced October 10, suggesting the session would delve into the reasons behind that day's events, and projected confidence in Binance's continued growth path despite the criticism.
The public dispute has sparked intense debate within the crypto community. Moonrock Capital founder Simon Dedic framed it as "One shady CEX attacking the other shady CEX." Others, like The Rollup's CEO Andy C, used the moment to contrast centralized exchanges with on-chain alternatives, calling Binance "crooked and opaque" while praising Hyperliquid. Flood, CEO of Fullstrack.trade, argued crypto "will never have a truly great era and reach mainstream adoption as long as Binance is the dominant exchange."
The clash highlights a critical juncture for the industry, touching on core issues of market integrity, business model sustainability, and the responsibility of large exchanges to foster healthy ecosystems. With global regulators increasingly focused on these areas, the public discourse between Zhao and Xu may attract significant attention beyond the crypto community, reflecting the industry's maturation phase where internal accountability is paramount.
