2 years ago
While respective theories emerged, the Binance CEO asserted that nary BTC oregon BNB trading enactment is happening down the scenes.
Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the terms of its autochthonal token Binance Coin (BNB).
The rumors person travel from respective marketplace commentators, including expert Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who person accused Binance of intentionally manipulating the marketplace to artificially inflate the worth of BNB.
In a June 13 tweet, CZ said that Binance had not sold immoderate of their BTC oregon BNB, adding that the crypto speech inactive held “a bag” of FTX Token (FTT) — the autochthonal token of the now-defunct crypto speech FTX.
4. Binance person not sold BTC oregon BNB. We adjacent inactive person a container of FTT.
It is astonishing they tin cognize precisely who sold based connected conscionable a terms illustration involving millions of traders. FUD. ♂️ pic.twitter.com/M3MUH2bFRE
“It is astonishing they tin cognize precisely who sold based connected conscionable a terms illustration involving millions of traders. FUD,” helium added.
CZ’s station was nonstop effect to a June 14 station from method investigation level Skew, which accused Binance of manipulating the marketplace done a bid of trades involving BTC, BNB and Tether (USDT):
“Binance is decidedly up to thing present to forestall BNB from crashing arsenic good arsenic BTC.”In the aforesaid thread, Bitcoin expert Dylan LeClair claimed that “BNB is intelligibly a fake market” which is trading with little realized measurement than BTC.
In a June 13 tweet, Cory Klippsten, the CEO of Swan Bitcoin besides alleged that Binance was engaging successful “wash trading,” and claimed that Binance is “trying to pretend” there’s enactment for BNB:
Wash trading similar craaaaaazzzzyyyyy connected Binance close present trying to unreal there’s enactment for BNB. This looks sooooooo atrocious for CZ.https://t.co/qCHjQCSXwD
— Cory Klippsten ️ Swan.com #Bitcoin (@coryklippsten) June 12, 2023Wash trading is simply a marketplace manipulation maneuver where a trader sells an plus and past buys it soon aft to inflate its request oregon marque it look similar there's much enactment successful the marketplace.
Analyst Joe Consorti from The Bitcoin Layer besides described BNB’s terms enactment arsenic “unusual” with the “$220 level” being “staunchly defended.” He suggested that it whitethorn beryllium a liquidation level for a BNB-collateralized loan.
Unusual terms enactment connected Binance.
Loads of selling unit connected bitcoin not contiguous connected different exchanges.
More cannon fodder that they whitethorn beryllium selling spot BTC to prop up BNB.
The $220 level is being staunchly defended — whitethorn beryllium a liquidation level for a BNB-collateralized loan. https://t.co/EYfLJ1KIcX pic.twitter.com/7XGNLlzcpf
In effect to CZ’s post, Consorti asserted that Binance should people an audited connection proving that Binance has nary BNB-collateralized liabilities successful bid for the “FUD” to end.
Related: 70% of unregulated speech transactions are lavation trading: NBER study
The United States Securities and Exchange Commission sued Binance.US connected June 5 for allegedly breaking securities laws successful summation to engaging successful lavation trading done its “primary undisclosed ‘market making’ trading steadfast Sigma Chain,” which is owned by CZ.
CZ and Binance.US person denied immoderate wrongdoing and intend connected “vigorously” defending the charges laid against them successful the U.S. District Court successful Washington D.C.
Magazine: US and China effort to crush Binance, SBF’s $40M bribe claim: Asia Express
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