Changpeng Zhao, CEO of Binance, has denied rumours that the exchange was selling Bitcoin to protect BNB’s price. In a tweet on June 13, CZ stated that Binance had not sold BTC or BNB and that the exchange still held a bankrupt FTX’s FTT. The statement was in response to several market analysts who alleged that Binance was wash-trading BNB’s trading volume to maintain its price above a certain threshold. CZ dismissed the allegations, stating that it was impossible for analysts to know who sold based solely on a price chart involving millions of traders.
Market Analysts Accuse Binance of Market Manipulation
Crypto analyst JW had alleged that Binance was selling spot Bitcoin to defend BNB’s price from dropping below $220. JW stated that as spot Bitcoin was sold off, BNB was purchased, which defended the $220 liquidation but also capped the upside potential of Bitcoin. Technical analysis platform Skew supported JW’s statement, claiming that Binance had been selling BTC for USDT, which was then pumped into BNB since May 27. Skew further noted that BNB was being sold off for BUSD to suppress BTC volatility. The platform concluded that this was market manipulation and that Binance was up to something to prevent BNB from crashing and to suppress BTC. Market analyst Joe Consorti also pointed out that there was an unusual price action on Binance, with loads of selling pressure on Bitcoin not present on other exchanges. Consorti suggested that Binance may be selling spot BTC to prop up BNB. According to these analysts, Binance was defending the $220 level to prevent a liquidation waterfall.
Despite Regulatory Challenges, BNB Price Rises
Despite regulatory challenges surrounding Binance, BNB has risen approximately 5% in the last 24 hours to $246.96 at the time of writing, according to CryptoSlate’s data. Meanwhile, BTC is down 0.88% to $25,924. BNB is one of the numerous digital assets the SEC labelled security in its June 5 lawsuit against Binance, a charge disputed by the exchange.
In summary, Binance CEO Changpeng Zhao has denied claims that the exchange was selling Bitcoin to protect BNB’s price. Market analysts had accused Binance of market manipulation, alleging that the exchange was wash-trading BNB’s trading volume and selling BTC for USDT, which was then pumped into BNB. Binance was also accused of selling spot BTC to prop up BNB and defend the $220 level to prevent a liquidation waterfall. Despite these allegations and regulatory challenges, BNB’s price has gone up by approximately 5% while BTC has gone down by 0.88%.