Is Binance Selling Bitcoin to Boost BNB? Theory gains traction in social networks

CZ Binance 1
  • BNB and Binance are trending terms on social media
  • Rumors circulate about market manipulation by Binance and its CEO
  • Users Accuse CZ of Selling Bitcoin to Boost BNB Price
  • It is not the first time that this theory has monopolized social networks 

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Binance and BNB have become the hottest topics in the cryptocurrency sphere on Wednesday amid speculation about market manipulation.

A theory alleging that the world’s largest cryptocurrency exchange is selling Bitcoin to boost the price of Binance Coin (BNB) in the market is gaining traction on social media.

A series of posts are circulating on X (formerly Twitter) accusing the co-founder and CEO of Binance, Changpeng Zhao (CZ), of being responsible for the recent fall in Bitcoin prices since he was allegedly selling large amounts of the flagship cryptocurrency. in the spot market to boost the price of BNB, the platform’s native token.

Although there seems to be no evidence of this movement, many network users seem to share the theory. Some even anticipate that BNB could crash to zero and that the CEO would be trying to keep the token afloat.

The matter has generated so much interest among the community of digital currency enthusiasts that Binance and BNB have become the two fastest-growing topics of discussion, on-chain data provider Santiment has noted.

Binance and BNB are currently the first and third fastest growing topics (respectively) in crypto. The main allegations point to [CZ] continuing to actively sell off his share of Bitcoin to support his own native token and keep it above key support levels,” Santiment wrote in a tweet

BNB and Bitcoin go down 

Market manipulation rumors are gaining ground as BNB struggles to maintain its price in the market.

Binance‘s native cryptocurrency fell below $205 this week, its lowest level in more than 12 months. While it has recovered slightly, posting gains of 2.7% in the last 24 hours, BNB is still holding below its crucial $220 level, losing more than 8% in the past week.

The drop came amid a broader downtrend in the market, which took Bitcoin below the $25,500 mark for the first time since June. The top cryptocurrency had been relatively stable above $29,000 for the past few weeks. BTC is trading at USD $25,900 with losses of 10% in the last week at the time of publication.

The theory about the sales to boost BNB rests, in part, on the fact that Binance is one of the largest Bitcoin holders in the world, so it is in a unique position to manipulate the market if it chooses. It should be noted that the exchange is currently the owner of the most Bitcoin-funded wallet address in the world.

The theory is not new 

However, this is not the first time this theory has appeared. Similar rumors circulated on social media in June this year, suggesting that the exchange is manipulating the market to artificially inflate the price of BNB. At the time, the speculations also coincided with bearish price action for BNB and the rest of the market.

CZ flatly rejected the rumors then. “Binance has not sold BTC or BNB,”  the CEO tweeted, even adding that the firm still maintained“ an FTT exchange,” referring to the native token of the now-defunct cryptocurrency exchange,  FTX. On other occasions, he described the rumors as “FUD” (fear, uncertainty and doubt).

Zhao previously claimed on social media that he kept 99% of his fortune in BNB, and the other 1% in BTC. However, he has also reiterated on numerous occasions that he ” does not care ” about the price of BNB and that his goal is to build. 

BNB fell back from the $300 mark in June, after Binance and its CEO were hit with a US Securities and Exchange Commission (SEC) lawsuit. The token has been declining in price ever since.