Binance co-founder Yi He issued a statement on February 10, directly linking the FUD (Fear, Uncertainty, Doubt) surrounding the exchange to a sharp drop in CoinMarketCap's Crypto Fear & Greed Index to the 5–10 range, a level associated with extreme fear.
Newbies See Binance as Crypto Itself, Rumors Scare Them Off
Yi He divides current market participants into three tiers. For newcomers, Binance is synonymous with the entire crypto space. When they see negative news and FUD about Binance on social media, their immediate instinct is to delay entering the market. She notes that this group is extremely sensitive to platform reputation.
Active Traders: Unclear Narrative, Take Profits First
For active traders already in the market, the more chaotic the narrative, the stronger the urge to reduce exposure. Yi He observes that when the situation is opaque, these players typically choose to "lock in profits first," securing paper gains and lowering risk. This collective behavior further suppresses buying pressure, creating a negative feedback loop.
OGs: Exhausted by 'Dumbing Down' FUD, Contemplating Exit
What worries Yi He most is the fatigue among early participants (OGs). Having long achieved financial freedom, these seasoned investors are bombarded with what she calls "dumbing-down FUD" and AI-generated attack content. Over time, they grow weary and skeptical about the industry's prospects, some even considering leaving crypto entirely. "It's not newcomer panic that scares me most — it's veteran burnout," she wrote.
Yi He offered no price predictions but emphasized a simple truth: "Prices can't rise until FUD stops." Until the rumors subside, anxiety at every level will continue to suppress crypto asset valuation recovery.