Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly promoting Bitcoin (BTC) to artificially stabilize the worth of its native token Binance Coin (BNB).
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 their BTC 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 primarily based on only a value chart involving hundreds of thousands of merchants. FUD. ♂️ pic.twitter.com/M3MUH2bFRE
— CZ Binance (@cz_binance) June 13, 2023
“It’s superb they will know precisely who offered primarily based on only a value chart involving hundreds of thousands of merchants. FUD,” he added.
CZ’s put up was direct response to a June 14 put up from technical evaluation platform Skew, which accused Binance of manipulating the market by a sequence of trades involving BTC, BNB and Tether (USDT):
“Binance is unquestionably as much as one thing right here to stop BNB from crashing in addition to BTC.”
In the identical thread, Bitcoin analyst Dylan LeClair claimed that “BNB is clearly a faux market” which is buying and selling with much less realized quantity than BTC.
In a June 13 tweet, Cory Klippsten, the CEO of Swan Bitcoin additionally alleged that Binance was participating in “wash buying and selling,” and claimed that Binance is “making an attempt to fake” there’s help for BNB:
Wash buying and selling like craaaaaazzzzyyyyy on Binance proper now making an attempt to fake there’s help for BNB. This seems 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 seem like 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 degree” being “staunchly defended.” He urged that it could be a liquidation degree for a BNB-collateralized mortgage.
Uncommon value motion on Binance.
A great deal of promoting stress on bitcoin not current on different exchanges.
Extra cannon fodder that they could be promoting 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.
Associated: 70% of unregulated change transactions are wash buying and selling: NBER research
The USA Securities and Change Fee sued Binance.US on June 5 for allegedly breaking securities legal guidelines along with participating in wash buying and selling by 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 intend on “vigorously” defending 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 Categorical
