Several market analysts, including Swan Bitcoin CEOs Dylan LeClair and Corey Klipstein, have expressed concern about Binance’s alleged activities in manipulating the market.
Recently the United States Securities and Exchange Commission (sec) The lawsuit against Binance Holdings Limited and Binance.US, the US branch of the largest global crypto exchange, on June 5, the company’s US market share significantly reduced As nearly 78% market makers and traders took flight from the exchange due to regulatory pressure in the country. Amidst these challenges, Binance CEO Changpeng Zhao (CZ) has denied claims of market manipulation and undeclared bitcoin (BTC) sales with the aim of artificially stabilizing the native token, BNB. binance,
Responding to the allegations on Twitter, CZ denied the allegations, adding that the exchange did not sell any of its BTC or BNB holdings.
Additionally, he revealed that the company still holds a significant amount of FTT tokens, the original crypto of the now-defunct company. ftxWhich declared bankruptcy last year.
The Binance boss expressed his astonishment that Binance could manipulate the market, questioning it based on such inferences drawn from price charts involving millions of traders.
“Binance didn’t sell BTC or BNB. We still have a bag of FTT. Amazing how they can actually know who sold based on price charts involving millions of traders. FUD,” said CZ.
4. Binance has not sold BTC or BNB. We still have a bag of FTT.
It’s amazing that they can know exactly who sold what, based on price charts linked to millions of traders. FUD. pic.twitter.com/M3MUH2bFRE
— CZ 🔶 Binance (@cz_binance) June 13, 2023
The market manipulation allegations are fueled by speculation on social media that Binance and its boss CZ are “selling BTC at an alarming rate” to defend against BNB liquidation at $220.
Binance and CZ Are Selling Bitcoin at an Alarming Rate to the Rescue $bnb $220 Liquidation Waterfall
As soon as spot bitcoin is sold, BNB is bought, which protects the liquidation at $220 but also limits bitcoin’s upside potential.
it’s a total house of cards pic.twitter.com/ils8nsQiXd
— JW (@JW100x) June 13, 2023
The crypto asset that previously traded above $300 SEC lawsuit It fell as low as $220 to its lowest since mid-March.
Suspicion and Unusual Price Action
Several market analysts, including Swan Bitcoin CEOs Dylan LeClair and Corey Klipstein, have also expressed concern about Binance’s alleged activities in manipulating the market to artificially inflate the value of BNB.
In his tweet, Leclair described the BNB market as “clearly a fake market”, alleging that it has a lower trading volume than BTC.
Klipstein, on the other hand, claimed that Binance engages in wash trading, a type of scam that involves artificial inflation of trading volume by executing fake buy and sell orders.
Hans Bitcoin CEO Claimed That crypto exchange participated in the scam, pretending to support BNB.
Another analyst, Joe Consorti of The Bitcoin Layer, also observed that the price action of BNB is Extraordinary, Especially near the $220 level, which was strongly defended.
He suggested that this level could be a liquidation point for BNB-collateralized loans.
Commenting on CZ’s statement that Binance was not involved in market manipulation practices, the consortium stressed the need for the exchange to publish audited information proving the absence of BNB-collateralized liabilities.
He believes that such transparency is necessary to dispel the FUD that surrounds the allegations.
Meanwhile, the crypto market reacted negatively to the news of the SEC lawsuit against Binance, CZ and binance.us, It is alleged that the company’s crypto assets, BNB and BUSD, are security products.
B T c and Ether fell below $26,000 and $1,800, respectively, indicating 4.5% and 8% declines since the SEC legal battle with Binance.
Other altcoins also experienced significant declines, causing investors to lose their funds as the market slumped.
Chimmanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging approach to her work.
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