Is Binance exchange Selling BTC to Stabilize BNB?
2 min readThe situation at Binance is coming to a head. After the lawsuit by the SEC, the world’s largest crypto exchange is under pressure, the burden of proof is overwhelming. It’s about illegal activities from unauthorized securities trading to embezzlement of customer funds. Foreseeable: a price loss of the in-house Binance Coin (BNB). The fourth-largest cryptocurrency by market capitalization has fallen by more than 20 percent in the last 30 days. As several analysts are now claiming, Binance is intentionally manipulating the market to artificially stabilize the value of BNB.
The rumors have already spread to crypto Twitter. Some analysts accuse Binance of washtrading. According to the allegations, the crypto exchange would sell Bitcoin for USDT. The USDT funds would then be “pumped” into Binance Coin that’s the argument. Bitcoin analyst Dylan LeClair is also of it convinced that “BNB is clearly a fake market” and is trading at a lower realized volume than Bitcoin.
Can confirm this is true,
Looks like BTC is being sold off for USDT reserves
USDT reserves are being pumped into BNB aggressively since 27th May
BNB is being sold off for BUSD to suppress volatility in BTC
BUSD is pumped into BTC to suppress downside volatility so BTC can be… https://t.co/yZ4VEtOjuR pic.twitter.com/MIYkLcvfOX
— Skew Δ (@52kskew) June 13, 2023
Changpeng “CZ” Zhao denies allegations
It was to be expected: Changpeng “CZ” Zhao denied the rumours, stamp the allegations as FUD. Nothing new: the Binance CEO vehemently denied speculation about a potential prison sentence. Whether the rumors are actually based on facts is difficult to verify. Reason enough for an independent investigation. At least that demand some critics.
Although many users defend CZ and do not want to hear anything about the “FUD arguments”. Nevertheless: Binance.US has already attracted attention in the SEC lawsuit for alleged involvement in wash trading. In any case, things are bad for the US branch: If the authorities freeze the company’s assets in the course of the proceedings, the crypto exchange business would “quickly come to a standstill,” Binance admits.
Binance rumor mill is heating up
Also hotly debated: the ones changed on June 6th Binance Terms and Conditions. Accordingly, the crypto exchange has the “exclusive authority to determine which digital assets are listed on the platform” and can also remove them at its own discretion. The main focus of the discussion is the following paragraph:
If Digital Assets that are no longer listed on the Platform remain in your Binance Account beyond a certain period of time, Binance may, at its sole discretion, convert those Digital Assets into another type of Digital Asset.
General Terms and Conditions III. Binance Services
Investors speculated that Binance could divert customer funds for its own purposes. In the current situation in particular, the company is thus securing sufficient liquidity. Whether the rumors are true remains to be seen.
Nevertheless: Some large investors are already withdrawing their investments and selling the native Binance token.
