Binance CEO Changpeng Zhao denies rumors of selling Bitcoin to bolster BNB
While several theories emerged, the Binance CEO asserted that no BTC or BNB trading activity is happening behind the scenes.
Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB (BNB) token.
The rumors have come from several market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who have accused Binance of intentionally manipulating the market to artificially inflate the value of BNB.
In a June 13 tweet, CZ said that Binance had not sold any of its or BNB, adding that the crypto exchange still held “a bag” of FTX Token (FTT) — the native token of the now-defunct crypto exchange FTX.
4. Binance have not sold BTC or BNB. We even still have a bag of FTT.
It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD. ♂️ pic.twitter.com/M3MUH2bFRE
— 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,” he added.
CZ’s post was a direct response to a June 14 post from technical analysis platform Skew, which accused Binance of manipulating the market through a series of trades involving BTC, BNB and Tether (USDT):
“Binance is definitely up to something here to prevent BNB from crashing as well as BTC.”
In the same thread, Bitcoin analyst LeClair claimed that “BNB is clearly a fake market,” which is trading with less realized volume than BTC.
In a June 13 tweet, Klippsten also alleged that Binance was engaging in “wash trading” and claimed that Binance is “trying to pretend” there’s support for BNB:
Wash trading like craaaaaazzzzyyyyy on Binance right now trying to pretend there’s support for BNB. This looks sooooooo bad for CZ.https://t.co/qCHjQCSXwD
— Cory Klippsten ️ Swan.com #Bitcoin (@coryklippsten) June 12, 2023
Wash trading is a market manipulation tactic where a trader sells an asset and then buys it shortly after to inflate its demand or make it look like there’s more activity in the marketplace.
Analyst Joe Consorti from The Bitcoin Layer also described BNB’s price action as “unusual” with the “$220 level” being “staunchly defended.” He suggested that it may be a liquidation level for a BNB-collateralized loan.
Unusual price action on Binance.
Loads of selling pressure on bitcoin not present on other exchanges.
More cannon fodder that they may be selling spot BTC to prop up BNB.
The $220 level is being staunchly defended — may be a liquidation level for a BNB-collateralized loan. https://t.co/EYfLJ1KIcX pic.twitter.com/7XGNLlzcpf
— Joe Consorti ⚡ (@JoeConsorti) June 13, 2023
In response to CZ’s post, Consorti asserted that Binance should publish an audited statement proving that Binance has no BNB-collateralized liabilities in order for the “FUD” to end.
Related: 70% of unregulated exchange transactions are wash trading: NBER study
The United States Securities and Exchange Commission sued Binance.US on June 5 for allegedly breaking securities laws in addition to engaging in wash trading through its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ.
CZ and Binance.US have denied any wrongdoing and say they will “vigorously” defend the charges laid against them in the U.S. District Court in Washington, D.C.
Magazine: US and China try to crush Binance, SBF’s $40M bribe claim: Asia Express
