Binance CEO Changpeng Zhao denies rumors of promoting Bitcoin to bolster BNB
Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly promoting Bitcoin (BTC) to artificially stabilize the worth of its native token Binance Coin (BNB).
The rumors have come from a number of market commentators, together with analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who’ve accused Binance of deliberately manipulating the market to artificially inflate the worth of BNB.
In a June 13 tweet, CZ mentioned that Binance had not offered any of their BTC or BNB, including that the crypto trade nonetheless held “a bag” of FTX Token (FTT) — the native token of the now-defunct crypto trade FTX.
“It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD,” he added.
CZ’s publish was direct response to a June 14 publish from technical evaluation platform Skew, which accused Binance of manipulating the market by way of a collection of trades involving BTC, BNB and Tether (USDT):
“Binance is definitely up to something here to prevent BNB from crashing as well as BTC.”
In the identical thread, Bitcoin analyst Dylan LeClair claimed that “BNB is clearly a fake market” which is buying and selling with much less realized quantity than BTC.
In a June 13 tweet, Cory Klippsten, the CEO of Swan Bitcoin additionally alleged that Binance was participating in “wash trading,” and claimed that Binance is “trying to pretend” there’s help for BNB:
Wash buying and selling is a market manipulation tactic the place a dealer sells an asset after which buys it shortly after to inflate its demand or make it appear to be there’s extra exercise within the market.
Analyst Joe Consorti from The Bitcoin Layer additionally described BNB’s value motion as “unusual” with the “$220 level” being “staunchly defended.” He prompt that it could be a liquidation stage for a BNB-collateralized mortgage.
In response to CZ’s publish, Consorti asserted that Binance ought to publish an audited assertion proving that Binance has no BNB-collateralized liabilities to ensure that the “FUD” to finish.
Associated: 70% of unregulated trade transactions are wash buying and selling: NBER examine
The US Securities and Change Fee sued Binance.US on June 5 for allegedly breaking securities legal guidelines along with participating in wash buying and selling by way of its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ.
CZ and Binance.US have denied any wrongdoing and intend on “vigorously” defending the fees laid towards them within the U.S. District Courtroom in Washington D.C.
Journal: US and China attempt to crush Binance, SBF’s $40M bribe declare: Asia Specific
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