Crypto change Binance has had a troublesome few months by way of market information and stress from regulatory our bodies. Only a few days in the past, Binance misplaced one other fee processing accomplice after Checkout.com terminated its contract with the crypto change. And now, one other rumor that seems to be spreading is that Binance is promoting Bitcoin on the spot market to maintain the worth of its native token, BNB.
Is Binance Actually Promoting Its Bitcoin To Purchase BNB?
The rumor originated from a publish made by @WhaleChart on X (previously Twitter), claiming that Binance is allegedly promoting Bitcoin on the spot market to help the worth of its personal token, BNB.
Binance is allegedly promoting Bitcoin to help the worth of their very own token BNB
— Whale (@WhaleChart) August 22, 2023
This rumor appears to be gaining floor because the tweet first went reside, particularly as the worth of BNB continues to battle out there. It’s because as one of many greatest holders of each Bitcoin and BNB, Binance is in a singular place to control the market if it wished.
Nevertheless, this stays solely a rumor as there are presently no indicators the crypto change is manipulating the worth for short-term positive aspects in BNB.
Moreover, information from Coinmarketcap exhibits that the costs of each cryptocurrencies have been falling collectively up to now week, with Bitcoin additionally down by 11.20% in a 7-day timeframe.
This won’t be the primary time such allegations are being introduced towards the change. Binance has confronted comparable claims in the past, with crypto analyst JW claiming Binance was promoting Bitcoin to prop up the worth of BNB in June of this yr.
Token worth falls in tandem with BTC | Supply: BNBUSD on Tradingview.com
Binance CEO Changpeng Zhao (CZ), nonetheless, denied the allegations, dismissing them as an try and unfold worry, uncertainty, and doubt (FUD).
4. Binance haven’t bought BTC or BNB. We even nonetheless have a bag of FTT.
It’s superb they’ll know precisely who bought primarily based on only a worth chart involving thousands and thousands of merchants. FUD. 🤷♂️ pic.twitter.com/M3MUH2bFRE
— CZ 🔶 Binance (@cz_binance) June 13, 2023
Whether or not or not the theories are true, Binance has absolutely been beneath intense scrutiny, but it surely continues to face sturdy as the most important change on the earth.
BNB and different cryptocurrencies that depend on the BEP20 and BEP2 token requirements are very depending on Binance, as information surrounding the change has led to cost pumps and dumps up to now. However there was no stable proof that the change has been manipulating the costs of any of those tokens.
The worth of BNB has seen a drastic discount up to now few days as your complete market goes by way of corrections signaled by BTC falling by greater than 8% in a few minutes final week. In consequence, BNB has seen its worth drop to $209.44, a discount of 12.33% up to now few days.
To fight an extra worth drop, the BNB Chain needed to manually liquidate a $200 million position on the Venus DEFI protocol, which might have been liquidated after BNB dropped under $220.
On the time of writing, BNB is the fourth greatest crypto with a market cap of $32.2 billion.
Featured picture from Unsplash, chart from Tradingview.com