Binance CEO Rejects Claims of Manipulating Market to Bolster Native Exchange Coin BNB
Crypto fraud accusations against Binance and its CEO Changpeng “CZ” Zhao are casting a shadow over the reputation of the industry giant.
Prominent market commentators, among them analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, have implied that Binance could be guilty of underhanded market dealings to inflate the value of its native token, BNB.
Claims circulating on social media, particularly Twitter, suggest that Binance has been executing secret Bitcoin sales. This possibility was brought to light by a June 13 post from the technical analysis platform Skew, and triggered a cascade of related allegations.
LeClair and Klippsten, for instance, have gone on record suggesting Binance's involvement in "wash trading" to create a facade of market support for BNB.
Against the background of this speculation, CZ took to Twitter, rebutting the allegations. The CEO stated that Binance hadn't sold any Bitcoin or BNB.
In his dismissive response, CZ poked fun at the accusations, questioning how the commentators could come draw the conclusions they have based on price charts involving millions of trades.
Wash trading, a manipulation tactic involving the selling and immediate repurchase of an asset to inflate demand or create a false impression of market activity, is a recurring theme in the crypto fraud narrative.
Analyst Joe Consorti from The Bitcoin Layer also chimed into the online dispute, stating that BNB's price action appeared unusual and seemed staunchly defended at the $220 level. He speculated that this could be a liquidation level for a BNB-collateralized loan.
In a bid to dispel the "FUD" (Fear, Uncertainty, and Doubt), Consorti suggested Binance publish an audited statement demonstrating that it didn't hold any
Read more on cryptonews.com
