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Crypto trade Binance has had a troublesome few months when it comes to market information and strain from regulatory our bodies. Just just a few 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 value of its native token, BNB.
Is Binance Really Selling Its Bitcoin To Buy 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 value of its personal token, BNB.
BREAKING:
Binance is allegedly promoting Bitcoin to help the value of their very own token BNB
— Whale (@WhaleChart) August 22, 2023
This rumor appears to be gaining floor because the tweet first went reside, particularly as the value of BNB continues to wrestle available in the market. This is as a result of as one of many largest holders of each Bitcoin and BNB, Binance is in a singular place to control the market if it wished.
However, this stays solely a rumor as there are at the moment no indicators the crypto trade is manipulating the value for short-term good points in BNB.
Additionally, 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 trade. Binance has confronted related claims in the past, with crypto analyst JW claiming Binance was promoting Bitcoin to prop up the value of BNB in June of this 12 months.
Token worth falls in tandem with BTC | Source: BNBUSD on Tradingview.com
Binance CEO Changpeng Zhao (CZ), nonetheless, denied the allegations, dismissing them as an try to unfold worry, uncertainty, and doubt (FUD).
4. Binance haven’t bought BTC or BNB. We even nonetheless have a bag of FTT.
It is wonderful they will know precisely who bought primarily based 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 the theories are true, Binance has certainly been beneath intense scrutiny, but it surely continues to face sturdy as the most important trade on the earth.
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 previously. But 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 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. As a end result, BNB has seen its worth drop to $209.44, a discount of 12.33% previously few days.
To fight an extra worth drop, the BNB Chain needed to manually liquidate a $200 million position on the Venus DEFI protocol, which might have been liquidated after BNB dropped beneath $220.
At 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
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