Binance Cofounder Responds to AI-Fueled FUD Campaign Revelation

TL;DR

• Binance’s Warning: Yi He said AI-driven FUD pushed active traders to sell and made long-term users doubt crypto, noting the Fear and Greed index fell to the 5–10 zone.
• Coordinated Campaign: A report confirmed the FUD wave was a deliberate, organized smear effort rather than natural market fear, aligning with Yi He’s concerns.
• CZ’s Response: CZ defended broad token listings after criticism of meme coins and said exchanges follow evolving frameworks, adding that media outlets had previously attempted to create FUD against Binance and himself.
  

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Binance cofounder Yi He has addressed the growing controversy surrounding a recent study that uncovered a coordinated AI-driven FUD campaign targeting the exchange. In a detailed social media post, she emphasized Binance’s central role in the crypto ecosystem and warned that persistent FUD discourages newcomers from entering the industry. Her comments outlined how different user groups react to negative narratives, framing the latest wave of attacks as a deliberate attempt to destabilize sentiment rather than an organic market reaction.

https://twitter.com/heyibinance/status/2021129205556138107

Yi He Warns of FUD’s Impact on Market Behavior

Yi He explained that FUD often pushes active traders to sell their holdings to secure profits, while long-term participants may begin doubting the broader crypto landscape. She pointed to the recent AI-driven attacks as a catalyst for the sharp decline in sentiment, noting that the Crypto Fear and Greed index on CoinMarketCap had plunged into the 5 to 10 range. Despite the downturn, she expressed confidence that market conditions would improve once the manufactured negativity subsides.

The report that prompted Yi He’s response stated that the recent surge in fear was not spontaneous. Instead, it described the situation as “a deliberately organized and coordinated smear campaign.” This conclusion reinforced Yi He’s argument that the attacks were engineered to influence market psychology rather than emerging from genuine user concerns.

CZ Responds to Criticism Over Meme Coin Listings

Former Binance CEO Changpeng Zhao also weighed in on related discussions after trader Benjamin Cowen criticized exchanges for listing questionable meme coins. CZ argued that platforms should offer access to a wide range of tokens, including lesser-known or meme-inspired assets. He questioned why decentralized exchanges are praised for broad listings while centralized exchanges face backlash for similar practices.

CZ added that each exchange follows its own listing framework, which evolves over time. He also reiterated earlier claims that traditional media outlets had published stories designed to generate FUD against Binance and himself, reinforcing the broader narrative of coordinated pressure facing the company.