Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the worth of its BNB (BNB) token.
The rumors have come from a number of market commentators, together with analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who’ve accused Binance of deliberately manipulating the market to artificially inflate the worth of BNB.
In a June 13 tweet, CZ stated that Binance had not offered any of its or BNB, including that the crypto trade nonetheless held “a bag” of FTX Token (FTT) — the native token of the now-defunct crypto trade FTX.
4. Binance haven’t offered BTC or BNB. We even nonetheless have a bag of FTT.
It is superb they’ll know precisely who offered based mostly on only a worth chart involving hundreds of thousands of merchants. FUD. ♂️ pic.twitter.com/M3MUH2bFRE
— CZ Binance (@cz_binance) June 13, 2023
“It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD,” he added.
CZ’s put up was a direct response to a June 14 put up from technical evaluation platform Skew, which accused Binance of manipulating the market by way of a collection of trades involving BTC, BNB and Tether (USDT):
“Binance is definitely up to something here to prevent BNB from crashing as well as BTC.”
In the identical thread, Bitcoin analyst LeClair claimed that “BNB is clearly a fake market,” buying and selling with much less realized quantity than BTC.
In a June 13 tweet, Klippsten additionally alleged that Binance was participating in “wash trading” and claimed that Binance is “trying to pretend” there’s assist for BNB:
Wash buying and selling like craaaaaazzzzyyyyy on Binance proper now attempting to faux there’s assist for BNB. This seems to be sooooooo dangerous for CZ.https://t.co/qCHjQCSXwD
— Cory Klippsten ️ Swan.com #Bitcoin (@coryklippsten) June 12, 2023
Wash buying and selling is a market manipulation tactic the place a dealer sells an asset after which buys it shortly after to inflate its demand or make it appear to be there’s extra exercise within the market.
Analyst Joe Consorti from The Bitcoin Layer additionally described BNB’s worth motion as “unusual” with the “$220 level” being “staunchly defended.” He prompt that it might be a liquidation degree for a BNB-collateralized mortgage.
Unusual worth motion on Binance.
Loads of selling stress on bitcoin not current on different exchanges.
More cannon fodder that they could be selling spot BTC to prop up BNB.
The $220 degree is being staunchly defended — could also be a liquidation degree for a BNB-collateralized mortgage. https://t.co/EYfLJ1KIcX pic.twitter.com/7XGNLlzcpf
— Joe Consorti ⚡ (@JoeConsorti) June 13, 2023
In response to CZ’s put up, Consorti asserted that Binance ought to publish an audited assertion proving that Binance has no BNB-collateralized liabilities to ensure that the “FUD” to finish.
Related: 70% of unregulated trade transactions are wash buying and selling: NBER examine
The United States Securities and Exchange Commission sued Binance.US on June 5 for allegedly breaking securities legal guidelines as well as to participating in wash buying and selling by way of its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ.
CZ and Binance.US have denied any wrongdoing and say they may “vigorously” defend the fees laid in opposition to them within the U.S. District Court in Washington, D.C.
Magazine: US and China attempt to crush Binance, SBF’s $40M bribe declare: Asia Express
