Binance is not ‘dumping’ Solana and other token holdings

Binance, the world’s largest cryptocurrency alternate, denied hypothesis that it has been promoting off some holdings, regardless of widespread social media claims amid the most recent market downturn.

The crypto market skilled a big correction after the $1.4 billion Bybit hack, which noticed Bitcoin’s (BTC) worth sink to a low of $78,197, final seen on Nov. 10, 2024, Cointelegraph Markets Professional knowledge exhibits.

Cryptocurrencies, Investments, Cryptocurrency Exchange, Binance, Decentralized Exchange, Solana — *BTC/USD, 1-year chart. Supply: Cointelegraph*

Following the decline, social media hypothesis arose that a number of the largest crypto corporations, together with Binance, had brought about the market crash by promoting their token holdings in over-the-counter (OTC) trades.

Binance has refuted the claims, saying they stem from a misunderstanding of its position as an alternate. “Binance hasn’t ‘dumped’ or ‘offered’ massive quantities of tokens as some tweets have wrongly claimed,” a Binance spokesperson instructed Cointelegraph.

“They’re misunderstanding what Binance does as an alternate, which is we merely assist customers match trades,” they added.

Among the hypothesis got here after knowledge arose of market makers withdrawing massive quantities of Solana (SOL) from Binance scorching wallets, main crypto buyers to falsely assume that this was the alternate promoting its holdings.

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Market makers transfer their property in keeping with “personal methods”

Crypto market maker Wintermute withdrew over $38.2 million price of Solana from Binance within the 24 hours main as much as 9:02 am UTC on Feb. 24, Arkham Intelligence knowledge exhibits.

The transfers occurred days forward of Solana’s $2 billion token unlock, which is about to launch over 11.2 million SOL tokens into circulation on March 1.

Nonetheless, related market makers function based mostly on their very own methods, unrelated to the world’s largest alternate, the Binance spokesperson defined, including:

“We have now no visibility into our customers’ choices, together with market makers who transfer their property in keeping with their very own methods. So whereas blockchain transparency is without doubt one of the finest issues about crypto, it’s essential to not leap to conclusions about screenshots of transactions.”

“As we at all times encourage our customers to do their very own analysis, we encourage the neighborhood to grasp extra in regards to the position of an alternate” and “what market makers do,” added the spokesperson.

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Nonetheless, business watchers stay involved about promoting strain which will include Solana’s forthcoming token unlock.

Crypto analyst Artchick.eth famous that over the following three months, greater than 15 million SOL — price about $2.5 billion — will enter circulation. Many of those tokens have been bought at $64 per SOL in FTX’s auctions by corporations akin to Galaxy Digital, Pantera Capital and Determine.

Equally, crypto dealer RunnerXBT talked about that it was a “harmful” interval to purchase Solana, highlighting that Galaxy Digital, Pantera and Determine stand to achieve $3 billion, $1 billion and $150 million, respectively, in unrealized income as soon as their SOL unlocks.