Binance CZ threatens to sue The Block! CZ Threatens to sue The Block after the crypto news publisher wrote an article claiming that the Binance Shanghai office was shut down following a raid. CZ had been quick to respond saying that a Shanghai office had not been opened in two years.
Zhao then provided evidence that there are writers in China that may be paid to write negative pieces about Binance. Since then, The Block has subtly changed the story by changing the police raid aspect. CZ has threatened to sue The Block claiming harm to its image.
Justin Sun has offered to team up with CZ to create a “FUD fighting fund” that could be worth more than $1 million USD after pledges from Zhai and Justin Sun, the CEO of Tron. Mike Dudas, the co-founder of The Block, said that this fund was being created “presumably to wield as an implicit threat against journalists who report facts that run contrary to their business interests”.
The crypto industry is rampant with market speculation, and an article with breaking news can cause investors to react quickly before it is fact-checked or cross-referenced. Combine this with low liquidity in the space and quick reactions can cause considerable price swings.
The issue is compounded by the young nature of the cryptocurrency industry as a whole. The industry is still young and not yet mature to support or demand well-vetted and thoroughly-researched journalistic content. We know this because there are “click-bait” articles geared towards more viewership and is certainly a tool used in this space.
The question then becomes – how do we get reliable news that we can trust? Cryptocurrency funding methods may provide better incentive setups, including Memo.Cash, which allows native tipping for quality content, and of course, Steemit, a blogging platform based on the Steem blockchain.
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