Binance answered a crisis with steps many customers read as a rescue, while DeFi builders and researchers labeled the same moves a dark scheme. Such events hurt traders, listed ventures and how watchdogs view the whole crypto field. The debate centers on Changpeng Zhao (CZ), with people splitting into two camps over his leadership and decisions.
Binance sent forty five million dollars of BNB to users after a wave of forced sales, which many took as direct help. CZ also warned the public when a BNB Chain account on X was hijacked, telling people to “stay SAFU” and to double check web links. These moves were read by supporters as practical steps to protect users during market stress.
At the same time, Binance pushed new products meant to lower hurdles to DeFi participation. The company launched Binance Alpha, a launchpad for DeFi tokens (HOME, SKATE, XPL, AB, RDO); a Venus Protocol mini tool inside the phone app — Binance Wallet — and Wrapped BNB, all positioned to help users reach DeFi with fewer steps. A quick note in this context: an airdrop is free tokens dropped into user wallets, either as a thank you or as compensation.
Critiques, concentration risks, and legal fallout
Critics argue that CZ’s large BNB stash creates a conflict of interest, as any payout in BNB could lift the value of his own holdings. They add that past network hiccups and outages created the very losses that later required payouts.
The Aster token, which pulled in fourteen point three three million dollars of fees in one day, had ninety three percent of its coins in only five wallets, with former Binance staff cited as advisers; observers doubt that a project with such tight pockets of supply counts as decentralized.
What follows is a model that attracts users and fresh coins but ties more activity to one company’s servers and raises questions about new listings. Regulators treat the pattern as proof of rule breaches, and CZ stepped down and signed a criminal deal with the U.S. Department of Justice that put him in prison for four months, a clear legal price. The clash leaves both big funds and small buyers unsure about who truly governs those tokens, how open the books are, and where self interest starts.
The tale of CZ and Binance mixes new tech with moves that win user love yet draw side eye from DeFi circles and supervisors. The open question is whether the sector can keep the speed and reach of a giant like Binance while adding enough distance and rule-following to keep the system from wobbling.
