Largest crypto exchange Binance’s CEO Changpeng Zhao “CZ” has dismissed allegations suggesting that Binance engaged in covert sales of Bitcoin with the intention of artificially propping up the value of its BNB token.
Various market commentators, such as analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, have levied allegations claiming that Binance deliberately manipulated the market in order to artificially boost the worth of BNB.
On June 13, Changpeng Zhao (CZ) took to Twitter to address the situation, stating that Binance had not engaged in any selling of its own Bitcoin and BNB. Additionally, he mentioned that the crypto exchange still possessed a quantity of FTX Token (FTT), the native token of the now-defunct FTX cryptocurrency exchange.
CZ further commented that “It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD.”
CZ’s response came as a direct reply to a post by the technical analysis platform Skew on June 14. Skew has made allegations suggesting that Binance was engaging in market manipulation through a sequence of trades involving BTC, BNB, and Tether. The post claimed that Binance was actively involved in preventing both BNB and BTC from experiencing a significant drop.
In a continuation of the discussion, Bitcoin analyst LeClair expressed their viewpoint in the thread, stating that “BNB appears to be an artificial market” since its realized trading is significantly lower compared to BTC.
Following the SEC’s categorization of 61 altcoins, which included Binance’s BNB token, as securities in their lawsuit against Binance, the BNB token experienced a significant decline, breaking below a critical support level of $300 and plunging by over 30% within a matter of days. However, there seems to be a recovery underway for the BNB token, with its price bouncing back by nearly 7% in the past 24 hours. As of now, the token is being traded at $250.
