Binance CEO denies selling Bitcoin amid market manipulation allegations Binance CEO denies selling Bitcoin amid market manipulation allegations
Binance CEO Changpeng 'CZ' Zhao has denied rumors that the exchange was selling Bitcoin to defend BNB's price.
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Updated: Jul. 6, 2023 at 2:32 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance CEO Changpeng ‘CZ’ Zhao denied rumors that his exchange was selling Bitcoin to protect BNB’s price, according to a June 13 tweet.
CZ tweeted that “Binance have not sold BTC or BNB,” adding that the exchange still holds “a bag” of bankrupt FTX’s FTT.
Zhao’s statement responded to several market analysts who alleged that Binance was wash-trading BNB’s trading volume to maintain its price above a certain threshold. CZ said:
“It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD.”
Market speculations
On June 12, crypto analyst JW alleged Binance was selling “spot Bitcoin at an alarming rate” to defend BNB’s price from dropping below $220. JW said:
“As spot Bitcoin is sold off, BNB is purchased, which defends the $220 liquidation but also caps the upside potential of Bitcoin”
Technical analysis platform Skew corroborated JW’s statement, claiming Binance appears to have been selling BTC for USDT, which is then pumped into BNB since May 27.
The platform further noted that BNB was being sold off for BUSD to suppress BTC volatility. It added:
“This is technically market manipulation, Binance is definitely up to something here to prevent BNB from crashing as well BTC.”
Meanwhile, market analyst Joe Consorti pointed out that there was an unusual price action on Binance. Consorti added:
“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.”
According to these analysts, Binance was defending the $220 level to prevent a “liquidation waterfall.” CryptoSlate reported that Binance’s BNB ecosystem faces a $200 million liquidation if its price falls below $220.
BNB is up 5%
Despite the allegations and regulatory challenges surrounding Binance, BNB is up roughly 5% in the last 24 hours to $246.96 at the time of writing, according to CryptoSlate’s data. On the other hand, BTC is down 0.88% to $25,924.
BNB is one of the numerous digital assets the SEC labeled security in its June 5 lawsuit against Binance—a charge disputed by the exchange.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.