Hello everyone, in this article, we will take a closer look at a controversy about Binance.

Binance artificially pumping BNB ?

It all started with a simple post by a user on Twitter. This person was highlighting strange price movements for the BTC/USDT and BNB/USDT pairs on Binance. According to them, it is possible that the exchange platform is intentionally selling BTC to buy a large amount of BNB and artificially maintain its price.

The above figure was highlighted by the user to support his theory. On the left, we have the BTC/USDT pair, and on the right, the BNB/USDT pair. Quickly enough, we observe the impact of recent news on the BNB price of Binance (see the graph located in the top right).

However, the most interesting aspect lies in the two middle graphs, representing the CVD indicator. This indicator is particularly useful for tracking transactions on contracts tied to the respective asset, here specifically in spot trading. As you can see in the figure above, for Bitcoin: it has been consistently decreasing linearly since the end of May, symbolizing a continuous sale of BTC on the exchange.

Conversely, for Binance's token: this indicator has only been increasing over the same period, symbolizing a nearly continuous purchase of BNB on the exchange. The problem is that these behaviors do not reflect the price movements of the assets or the sentiments of investors, who seem to be exiting their positions in risky altcoins and seeking refuge in Bitcoin.

4

If some of you are familliar with CZ tweets you’ve surely seen the letter 4 quite often, for him it means ignore FUD : Fear, Uncertainty and Doubt :

So in a tweet he denied those allegations :

A 200 millions dollar threat

This acusation has received a great relay from people because it could be plausible due to the threat that a possible even more brutal fall would bring the BNB corner under the $218 if so, approximately $210 million would be liquidated on Venus, a decentralized finance (DeFi) protocol specializing in lending. The only solution would be for the holder of this address to add collateral to their position.

However, this is impossible as their address has been frozen by Binance in connection with an incident dating back to the fall of 2022.

It is beacause this position belongs to a hacker who stole over 2 million BNB (approximately $500 million). To achieve this, they had borrowed $147.5 million worth of stablecoins with collateral of 935,000 BNB. It is precisely this position that threatens the entire ecosystem of the BNB Chain.

For information, there is still an exit strategy, which once again questions the decentralization of the BNB Chain. There is a whitelisted address owned by the central team of the BNB Chain, authorized to collaborate with "Binance and other actors" to facilitate the liquidation and prevent it from occurring with friction.

Conclusion :

Binance faces serious allegations about the management of their BTC reserves to supposedly pump the BNB coin that is in a very precarious situation. We will need to follow this carefully

Thumbnail source : COINTELEGRAPH

As always thank you for reading !

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