Crypto change Binance has had a tricky few months when it comes to market information and strain from regulatory our bodies. Only a few days in the past, Binance misplaced one other fee processing accomplice after Checkout.com terminated its contract with the crypto change. 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 submit 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 for the reason that tweet first went stay, particularly as the value 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 control the market if it wished.
Nevertheless, this stays solely a rumor as there are at the moment no indicators the crypto change is manipulating the value for short-term positive aspects in BNB.
Moreover, information from Coinmarketcap exhibits that the costs of each cryptocurrencies have been falling collectively previously 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 towards the change. Binance has confronted comparable claims previously, 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), nevertheless, denied the allegations, dismissing them as an try and unfold worry, uncertainty, and doubt (FUD).
4. Binance haven’t bought BTC or BNB. We even nonetheless have a bag of FTT.
It’s superb they will know precisely who bought 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 most important change 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 change has led to cost pumps and dumps previously. However there was no stable proof that the change has been manipulating the costs of any of those tokens.
The value of BNB has seen a drastic discount previously 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. In consequence, BNB has seen its worth drop to $209.44, a discount of 12.33% previously few days.
To fight an additional 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 under $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