The price of the BNB token has been surging considerably, with several people believing that Binance is selling Bitcoin to stabilize the token. Such statements come from a number of analysts in the crypto market that accuse the exchange of intentionally manipulating the market to artificially inflate the trading price of BNB. People believe that BNB is clearly a fake market right now, and it is trading with less realized volume in comparison to Bitcoin.
Can confirm this is true,
Looks like BTC is being sold off for USDT reserves
USDT reserves are being pumped into BNB aggressively since 27th May
BNB is being sold off for BUSD to suppress volatility in BTC
— Skew Δ (@52kskew) June 13, 2023
It is also rumored that the exchange is involved in wash trading to make it seem that there is real support for the token. Wash trading is a way of market manipulation in which the trader sells off an asset, and buys it again shortly after to boost its demand and to make it seem that there is increased activity in the market. Not too long ago, the SEC sued Binance for violating the securities law and indulging in wash trading via its undisclosed market making firm, Sigma Chain. The exchange and its CEO, Changpeng Zhao, have denied all allegations.
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
At the time of writing, BNB has surged by an impressive 6.46% in the previous 24 hours. The increase has pushed the trading price up to almost $249.40, and the total market cap stands at $39 billion. Keeping the current situation in mind, it is still a mystery whether or not the price of BNB is artificially manipulated, or if actual investors are behind the increase. For now, the crypto community is waiting to see how the story unfolds.
Changpeng Zhao Denies Allegations of BNB Price Manipulation
With analysts pointing fingers toward Binance’s possible manipulation of BNB, Changpeng Zhao had to jump in to make clarifications. Through his tweet, CZ argued that Binance did not sell any Bitcoin or BNB.
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
He clapped back at the people making these allegations by stating that it is rather surprising how they can make assumptions based on charts that involve millions of traders. As a response to CZ’s tweet, Consorti asserted that the exchange must present an audited statement as a means of proving that Binance does not have any BNB-collateralized liabilities in order for the FUD to end.