Crypto alternate Binance has had a troublesome few months by way of market information and stress from regulatory our bodies. Just a number of 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 Really Selling Its Bitcoin To Buy 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 help the value of its personal token, BNB.
BREAKING:
Binance is allegedly promoting Bitcoin to help 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 wrestle out there. This is as a result of as one of many largest holders of each Bitcoin and BNB, Binance is in a singular place to govern the market if it wished.
However, 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.
Additionally, 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 is not going to be the primary time such allegations are being introduced in opposition to the alternate. Binance has confronted related 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 value falls in tandem with BTC | Source: BNBUSD on Tradingview.com
Binance CEO Changpeng Zhao (CZ), nevertheless, denied the allegations, dismissing them as an try to unfold worry, uncertainty, and doubt (FUD).
4. Binance haven’t bought BTC or BNB. We even nonetheless have a bag of FTT.
It is superb they’ll know precisely who bought primarily based on only a value chart involving hundreds of thousands of merchants. FUD. 🤷♂️ pic.twitter.com/M3MUH2bFRE
— CZ 🔶 Binance (@cz_binance) June 13, 2023
Whether or not the theories are true, Binance has certainly been beneath intense scrutiny, nevertheless it continues to face robust as the most important alternate on the 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. But there was no stable proof that the alternate has been manipulating the costs of any of those tokens.
The value of BNB has seen a drastic discount up to now few days as your complete market goes by means of corrections signaled by BTC falling by greater than 8% in a few minutes final week. As a outcome, BNB has seen its value drop to $209.44, a discount of 12.33% up to now few days.
To fight an extra value 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.
At the time of writing, BNB is the fourth largest crypto with a market cap of $32.2 billion.
Featured picture from Unsplash, chart from Tradingview.com
