Crypto alternate Binance has had a tricky few months by way of market information and stress from regulatory our bodies. Only a few days in the past, Binance misplaced one other cost processing associate after Checkout.com terminated its contract with the crypto alternate. And now, one other rumor that seems to be spreading is that Binance is promoting Bitcoin on the spot market to maintain the value of its native token, BNB.
Is Binance Actually Promoting Its Bitcoin To Purchase BNB?
The rumor originated from a put up made by @WhaleChart on X (previously Twitter), claiming that Binance is allegedly promoting Bitcoin on the spot market to assist the value of its personal token, BNB.
BREAKING:
Binance is allegedly promoting Bitcoin to assist the value of their very own token BNB
— Whale (@WhaleChart) August 22, 2023
This rumor appears to be gaining floor because the tweet first went dwell, particularly as the value of BNB continues to battle available in the market. 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 needed.
Nonetheless, this stays solely a rumor as there are presently no indicators the crypto alternate is manipulating the value for short-term beneficial properties in BNB.
Moreover, knowledge 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 alternate. Binance has confronted comparable claims in the past, with crypto analyst JW claiming Binance was promoting Bitcoin to prop up the value 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 concern, uncertainty, and doubt (FUD).
4. Binance haven’t offered BTC or BNB. We even nonetheless have a bag of FTT.
It’s superb they will know precisely who offered based mostly on only a worth chart involving tens of millions 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 underneath intense scrutiny, but it surely continues to face sturdy as the largest alternate on this planet.
BNB and different cryptocurrencies that depend on the BEP20 and BEP2 token requirements are very depending on Binance, as information surrounding the alternate has led to cost pumps and dumps up to now. However there was no strong proof that the alternate 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. Consequently, BNB has seen its worth drop to $209.44, a discount of 12.33% up to now few days.
To fight an additional 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
