3 - 4 minute read
Binance, the world’s largest cryptocurrency exchange, has been at the center of rumors that it has been selling bitcoin (BTC) to keep the price of bnb coin (BNB) from falling below certain levels. However, Binance CEO Changpeng “CZ” Zhao has dispelled these rumors. In a tweet, he stated that “Binance have not sold BTC or BNB. We even still have a bag of FTT.”
4. Binance have not sold BTC or BNB. We even still have a bag of FTT.
— CZ 🔶 Binance (@cz_binance) June 13, 2023
It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD. 🤷♂️ pic.twitter.com/M3MUH2bFRE
These rumors originated from tweets by popular traders @JW100x and @52kskew that pointed to short-term price correlations between a sell-off in bitcoin and a purchase of BNB. According to Twitter data, these tweets were viewed over 3 million times cumulatively. @52kskew even suggested that “BNB is being sold off for BUSD to suppress volatility in BTC,” while “BUSD is pumped into BTC to suppress downside volatility so BTC can be swapped out for USDT.”
However, CZ dismissed these claims and suggested there could be short interest among Crypto Twitter members fueling the supposed rumors. Despite these rumors, BNB prices are up 6.6% in the past 24 hours while bitcoin has seen nominal declines, according to CoinGecko data.
These rumors have raised concerns among traders about the potential manipulation of the cryptocurrency market. If Binance was indeed selling off bitcoin to prop up BNB, this could lead to a significant drop in bitcoin prices. Moreover, if Binance was found to be manipulating the market, it could face regulatory scrutiny and legal action.
On the other hand, if the rumors were false, it could signal a buying opportunity for traders who believe in the potential of bitcoin and BNB. In any case, traders need to be vigilant and closely monitor the market to take advantage of any opportunities that may arise.
The Bottom Line
In conclusion, Binance CEO Changpeng “CZ” Zhao has dismissed rumors that the exchange has been selling bitcoin to prop up BNB prices. Despite these rumors, BNB prices have seen a 6.6% increase in the past 24 hours while bitcoin has remained relatively stable. While these rumors have raised concerns about market manipulation, traders need to be vigilant and closely monitor the market to take advantage of any opportunities that may arise.
