Binance's Alleged Bitcoin Sales Aim to Boost BNB Price

BNB in Free Fall

Binance Coin (BNB) has fallen below its 200-week Moving Average for the first time, sparking concerns about potential significant losses among altcoins, particularly those relying on the BEP20 and BEP2 token systems. The drop comes amid a broader market correction, with Bitcoin’s value dipping below $26.1k this week, creating anxiety and uncertainty in the cryptocurrency world.

advertisement

Source: CoinMarketCap

The situation has been exacerbated by reports of Binance allegedly dumping customers’ Bitcoin to support its BNB token. Crypto influencer WhaleChart first mentioned these allegations on social media platform X, with several Binance users later complaining that they could not withdraw their BTC due to a temporary suspension of withdrawals. While there has been no official confirmation of these reports, the crypto community remains divided on the issue.

Recommended Articles
ethereum price crypto news
Crypto Presale Projects For 2023 To Invest; Updated List
Must Read
crypto exchange affiliate programs
Best Crypto Trading Bots List 2023
Must Read
ethereum price crypto news
Top Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]
Must Read
ethereum price crypto news
Crypto Telegram Channels List 2023 [Updated]
Must Read
ethereum price crypto news
Top 10 Web3 Games To Explore In 2023; Here List
Must Read

Regulatory Woes

The exchange has been under constant regulatory scrutiny, particularly since the collapse of FTX and Alameda Research last year. In March, Binance faced a lawsuit from the United States Commodity Futures Trading Commission (CFTC), alleging illegal operations and a lack of proper compliance measures. The situation worsened when the US SEC charged Binance and its CEO, Changpeng Zhao (CZ), with violating securities laws.

Due to mounting regulatory pressure, Binance has also lost crucial partnerships, like the one with London-based credit card processing company Checkout.com. Such setbacks have affected Binance’s ability to provide fiat-to-crypto on-ramping services, further impacting its market standing.

Bitcoin Strategy

Binance has turned to its substantial Bitcoin holdings to counter the growing sell pressures. Recent reports suggest that Binance has resorted to selling Bitcoin over the past few days to halt further BNB price declines.

Binance’s Bitcoin strategy comes amid concerns about its alleged involvement in helping Russian users move money abroad in violation of international sanctions. With a looming liquidation of a crypto loan secured by $130 million worth of BNB on decentralized finance protocol Venus, Binance must tread carefully to avoid cascading liquidations and unnecessary market damage.

Binance’s current challenges underscore the complexities of the cryptocurrency market and highlight the need for responsible practices and regulatory compliance. The exchange must address these concerns to regain investor confidence and ensure the stability of both its native token and the broader cryptocurrency ecosystem.

 

Comments

Post a Comment

Popular posts from this blog

Dogecoin is one 'cycle' away from $0.01: Here's Why

Image
January 2021 marked one of the most exciting times for a beloved crypto. Bitcoin toppled its 2017 high of $20,000 but it was not the topic of discussion. Dogecoin’s monthly return of 688% took the industry by surprise; suddenly, it was the only asset the general community cared about. Over the next few weeks, DOGE managed to build momentum reaching an all-time high of $0.74 cents. The bullish market helped, Elon Musk was the next big ‘crypto influencer’ and the ‘memecoin’ had everyone’s attention. Now, 730 days later, the industry is at the opposite end of the spectrum, and well Dogecoin is possibly one destructive cycle away from falling under $0.01. Unbelievable? Let us explain. There is no escaping the Dogecoin ‘Void’ We will break down this Analysis into two parts. Firstly, let us understand the price action for Dogecoin from a technical and trend perspective. At press time, Dogecoin rallied by roughly 10% in 2023. Pretty solid ...
Read more

Bitcoin traders await FOMC, Powell as BTC price hits new 1-month high

Image
Bitcoin keeps up the gains with U.S. stocks with hours to go until a decision on rate hikes and comments from Fed Chair Powell. Bitcoin (BTC) set new one- month highs on the Dec. 14 Wall Street open on the day of key events for the United States Federal Reserve. BTC/USD 1-day candle chart (Bitstamp). Source: TradingView Bitcoin bullish with Ustocks into FOMC Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $18,126 on Bitstamp, beating the $18,106 high from the day prior. U.S. stocks edged higher as markets eagerly awaited feedback from the Fed after the November Consumer Price Index (CPI) print showed inflation slowing beyond expectations. Dec. 14 was set to see a decision on rate hikes for the month from the Federal Open Market Committee (FOMC), together with a speech from Fed Chair Jerome Powell. The latter event tends to spark considerable volatility, with pundits closely scrutinizing Powell’s language for hints about longer-term economic policy. “With FO...
Read more

3 theses that will drive Ethereum and Bitcoin in the next bull market

Image
Cryptocurrency is going to break out of its bubble and reach critical mass thanks to layer-2 blockchains — and a couple of other factors. After 2021, we entered an era in cryptocurrency where people stopped talking only about financial decentralization and started to broadly discuss the tokenization of everything, thanks in part to nonfungible tokens (NFTs). This shift represents a critical perspective that is set to guide three theses for the upcoming bull market . To fully grasp these theses , it is crucial to understand that everything is data. Money is data. Your engagement with a brand is data. Your credentials are data. The ticket for your favorite show is data. Since 2021, the ecosystem has increasingly started to store a large part of this data in the form of fungible tokens, NFTs, and timestamps on the blockchain, which acts as a data repository in this context. Related: Expect new IRS crypto surveillance to come with a surge in confiscation While not all data needs to be on...
Read more