Crypto trade Binance has had a tricky few months when it comes to market information and strain from regulatory our bodies. Just some days in the past, Binance misplaced one other cost processing companion after Checkout.com terminated its contract with the crypto trade. 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 put up 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.
BREAKING:
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 for the reason that tweet first went stay, particularly as the worth of BNB continues to battle available in the market. It’s because as one of many largest holders of each Bitcoin and BNB, Binance is in a novel place to govern the market if it wished.
Nonetheless, this stays solely a rumor as there are presently no indicators the crypto trade 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 prior 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 trade. Binance has confronted comparable claims prior to now, 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 concern, 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 based mostly on only a worth chart involving hundreds of 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, however it continues to face sturdy as the largest trade 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 trade has led to cost pumps and dumps prior to now. However there was no strong proof that the trade has been manipulating the costs of any of those tokens.
The worth of BNB has seen a drastic discount prior to now few days as all the market goes by means 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% prior to now few days.
To fight an extra worth drop, the BNB Chain needed to manually liquidate a $200 million place on the Venus DEFI protocol, which might have been liquidated after BNB dropped beneath $220.
On 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
