The CEO of Binance, Changpeng “CZ” Zhao, has refuted allegations that Binance has been selling bitcoin (BTC) secretly to artificially stabilize the price of its BNB token (BNB).
The rumors have I come from various market commentatorsincluding analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, that have accused Binance from intentionally manipulating the market to artificially inflate the value of BNB.
In a June 13 tweet, CZ said that Binance had not sold any of its or BNB, adding that the crypto exchange still had “a bag” of FTX Token (FTT)the native token of the now-defunct crypto exchange FTX.z
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
4. Binance has not sold BTC or BNB. We even still have a FTT bag.
It’s amazing that they can tell exactly who sold based on just one price chart involving millions of traders. FUD. ♂️ pic.twitter.com/M3MUH2bFRE
“It’s amazing that they can tell exactly who sold based on just one price chart involving millions of traders. FUD,” he added..
CZ’s post was a direct response to a June 14 post from the technical analysis platform Skew, which accused Binance of manipulating the market through a series of trades with BTC, BNB, and Tether (USDT):
“Binance is definitely up to something to keep BNB from crashing, just like BTC.”
In the same thread, bitcoin analyst leclair he claimed that “BNB is clearly a fake market”, which operates with less realized volume than BTC.
In a June 13 tweet, Klippsten also alleged that Binance was engaging in “wash trading” and claimed that Binance is “trying to pretend” that there is support for BNB.:
Wash trading like craaaaaazzzzyyyyy on Binance right now trying to pretend there’s support for BNB. This looks soooooo bad for CZ.
—Cory Klippsten️Swan.com #Bitcoin (@coryklippsten) June 12, 2023
Wash trading abounds on Binance trying to pretend there is support for BNB. This looks sooo bad for CZ.
He wash trading is a market manipulation tactic in which a trader sells an asset and buys it soon after in order to inflate its demand or make it appear that there is more activity in the market.
the analyst Joe Consorti of The Bitcoin Layer too described BNB price action as “unusual” as “$220 level” is “unconditionally defended”. He suggested that it could be a liquidation level for a BNB collateralized loan.
Unusual price action on Binance.
Loads of selling pressure on bitcoin not present on other exchanges.
More cannon fodder that they may be selling spot BTC to prop up BNB.
The $220 level is being staunchly defended — may be a liquidation level for a BNB-collateralized loan. pic.twitter.com/7XGNLlzcpf
— Joe Consorti ⚡ (@JoeConsorti) June 13, 2023
There is some unusual price action on Binance. There is a lot of selling pressure in bitcoin that is not present in other exchanges. This further suggests that they may be selling BTC spot to prop up BNB. The $220 level is being strongly defended; it may be a liquidation level for a BNB collateralized loan. pic.twitter.com/7XGNLlzcpf
In response to CZ’s post, Consortium he claimed that Binance should publish an audited statement showing that Binance has no liabilities collateralized by BNB in order for “FUD” to end.
CZ and Binance.US have denied any infringement and affirm that they will “vigorously” defend the charges against them before the US District Court in Washington, DC
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