The rumor comes from multiple market pundits, including analyst Dylan LeClair and Swan Bitcoin CEO Corey Cristen, who say Binance intends to artificially inflate the value of BNB. accused of manipulating the market.
Zhao said in a tweet that Binance has sold neither BNB nor any BNB, and that the cryptocurrency exchange platform still retains a “sack” of FTX tokens, the original token of the now-defunct FTX cryptocurrency exchange. He added that he does.
“It's amazing how we can accurately determine who is selling based solely on price charts involving millions of traders,” adds Zhao.
Zhao's post was a direct response to a tweet by an analyst who accused Binance of manipulating the market through a series of transactions involving BTC, BNB and Tether.
“Binance must be planning something here to prevent BNB from stalling,” said the analyst.
Meanwhile, Clipsten accused Binance of being involved in “wash trading” and claimed that Binance was “pretending” to help stabilize the BNB price.
Wash trading is a market manipulation tactic in which traders sell an asset and buy it as soon as there appears to be increased demand for that asset or increased market activity.
In response to Zhao's post, The Bitcoin Layer analyst Joe Consorti issued an audited statement to prove that Binance is not responsible for BNB's guarantees regarding the expiry of “FUD.” He stressed the need to make a statement.
SEC sues Binance
Earlier this month, the U.S. Securities and Exchange Commission (SEC) sued Binance for allegedly violating securities laws and conducting wash trading through “major trading firm Sigma Chain.”
But Chao and Binance have denied any wrongdoing and said they would “strongly” defend the charges filed in a Washington, DC court.
Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Diksia.com is not responsible for profits and losses arising from investment decisions.
The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Cryptocurrency investments are subject to market risks, and readers should exercise caution and do their due diligence.