Changpeng Zhao, popularly known as CZ, the CEO of Binance, has responded to rumors circulating in the crypto community about the exchange selling bitcoin (BTC) to artificially maintain the prices of bnb coin (BNB).
CZ took to Twitter to address these allegations, asserting that Binance has not sold any BTC or BNB and even retains a bag of FTT.
He attributed the rumors to potential short interest among members of Crypto Twitter, debunking the speculative claims.
Dispelling the Rumors
Rumors gained traction after tweets from prominent traders @JW100x and @52kskew pointed out short-term price correlations between BTC sell-offs and BNB purchases.
The tweets went viral, accumulating over 3 million views on Twitter. @52kskew alleged that aggressive inflows of USDT reserves into BNB since May 27 were aimed at curbing BTC’s volatility by selling off BNB for BUSD, which is then used to stabilize BTC and convert it back to USDT.
Analyzing the Claims
@JW100x expressed concern over this alleged market manipulation, stating that as BTC is sold off, BNB is purchased to defend against liquidation at $220, while simultaneously capping BTC’s upside potential. These claims suggested a fragile ecosystem that could potentially harm market dynamics.
CEO’s Response and Clarification:
Binance CEO CZ promptly addressed the rumors, denying any BTC or BNB sales by the exchange. He attributed the speculation to the power of social media, cautioning against the influence of unverified information. CZ’s response aimed to dispel concerns and restore confidence in Binance’s integrity.
Market Impact and Regulatory Implications:
Such rumors and speculations can create uncertainty within the crypto market. In an industry already subject to intense regulatory scrutiny, unsubstantiated claims of market manipulation can have far-reaching consequences. It is crucial for participants to rely on accurate information and reliable sources to maintain market stability and transparency.