Rumors began to circulate on social media that cryptocurrency exchange Binance allegedly sold its holdings of bitcoin to protect BNB positions.
Binance and CZ have been selling spot Bitcoin at an alarming rate, to defend the $BNB $220 liquidation waterfall
As spot Bitcoin is sold off, BNB is purchased, which defends the $220 liquidation but also caps the upside potential of Bitcoin
It is a total house of cards pic.twitter.com/ils8nsQiXd
— JW (@JW100x) June 13, 2023
“As spot bitcoin sells, BNB is bought, which protects it from liquidation at $220, but also limits the upside potential of digital gold. This is a real house of cards,” wrote JW.
Another user, nicknamed Skew, confirmed the speculation. In his opinion, the trading platform sells bitcoins for USDT and pumps the proceeds into BNB. The latter is then sold for BUSD, which is re-routed into bitcoin to “suppress its downside volatility.”
Can confirm this is true,
Looks like BTC is being sold off for USDT reserves
USDT reserves are being pumped into BNB aggressively since 27th May
BNB is being sold off for BUSD to suppress volatility in BTC
BUSD is pumped into BTC to suppress downside volatility so BTC can be… https://t.co/yZ4VEtOjuR pic.twitter.com/MIYkLcvfOX
— Skew Δ (@52kskew) June 13, 2023
“Technically this is market manipulation, Binance is definitely up to something to prevent the crash of BNB and BTC,” he added.
The head of the trading platform, Changpeng Zhao, responded to the rumors on Twitter. He stated that the company did not sell either bitcoin or BNB. According to him, the platform still owns the tokens of the collapsed FTX crypto exchange (FTT).
4. Binance have not sold BTC or BNB. We even still have a bag of FTT.
It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD. 🤷♂️ pic.twitter.com/M3MUH2bFRE
— CZ 🔶 Binance (@cz_binance) June 13, 2023
“It’s amazing that they can accurately know the identity of a seller based on just a price chart with millions of traders. FUDZhao added.
Remember June 5th SEC sued Binance and its CEO. The regulator brought 13 charges, including the sale of unregistered securities. The Commission later filed a similar lawsuit against Coinbase.
In response, Binance released a statement declaring its readiness to “resolutely defend itself.”
The U.S. branch of the exchange disputed the SEC’s emergency asset freeze request, calling it “draconian and overly onerous.”
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