Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly promoting Bitcoin (BTC) to artificially stabilize the value 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 change nonetheless held “a bag” of FTX Token (FTT) — the native token of the now-defunct crypto change FTX.
4. Binance haven’t offered BTC or BNB. We even nonetheless have a bag of FTT.
It’s superb they will know precisely who offered based mostly on only a value chart involving thousands and thousands of merchants. FUD. ♂️ pic.twitter.com/M3MUH2bFRE
— CZ Binance (@cz_binance) June 13, 2023
“It’s superb they will know precisely who offered based mostly on only a value chart involving thousands and thousands of merchants. FUD,” he added.
CZ’s submit was a direct response to a June 14 submit from technical evaluation platform Skew, which accused Binance of manipulating the market via a collection of trades involving BTC, BNB and Tether (USDT):
“Binance is certainly as much as one thing right here to stop BNB from crashing in addition to BTC.”
In the identical thread, Bitcoin analyst LeClair claimed that “BNB is clearly a pretend market,” which is buying and selling with much less realized quantity than BTC.
In a June 13 tweet, Klippsten additionally alleged that Binance was partaking in “wash buying and selling” and claimed that Binance is “making an attempt to faux” there’s help for BNB:
Wash buying and selling like craaaaaazzzzyyyyy on Binance proper now making an attempt to faux there’s help for BNB. This appears 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 value motion as “uncommon” with the “$220 stage” being “staunchly defended.” He instructed that it could be a liquidation stage for a BNB-collateralized mortgage.
Uncommon value motion on Binance.
A great deal of promoting strain on bitcoin not current on different exchanges.
Extra cannon fodder that they might be promoting spot BTC to prop up BNB.
The $220 stage is being staunchly defended — could also be a liquidation stage for a BNB-collateralized mortgage. https://t.co/EYfLJ1KIcX pic.twitter.com/7XGNLlzcpf
— Joe Consorti ⚡ (@JoeConsorti) June 13, 2023
In response to CZ’s submit, 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.
Associated: 70% of unregulated change transactions are wash buying and selling: NBER examine
The USA Securities and Change Fee sued Binance.US on June 5 for allegedly breaking securities legal guidelines along with partaking in wash buying and selling via its “main undisclosed ‘market making’ buying and selling agency Sigma Chain,” which is owned by CZ.
CZ and Binance.US have denied any wrongdoing and say they’ll “vigorously” defend the fees laid in opposition to them within the U.S. District Courtroom in Washington, D.C.
Journal: US and China attempt to crush Binance, SBF’s $40M bribe declare: Asia Specific
