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Binance’s BNB Recovered 20% From Local Lows — But Manipulation Accusations Remain

Key Takeaways:

  • Analysts point out that Binance allegedly props up its native BNB to stimulate market activity.
  • Binance refutes these claims by saying that these blockchain movements are natural.
  • Since June 2023, Binance has found itself in more trouble by each coming week.

Binance’s BNB Recovered 20% From Local Lows — But Manipulation Accusations Remain

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YEREVAN ( — It’s already common knowledge that Binance is in a regulatory mess. Notably, the exchange received a lawsuit from the US Securities and Exchange Commission (SEC) on June 5. Since then, Binance’s native token, BNB, has dropped by around 20%.

BNB/USD six-month price performance. Source: TradingView

Nonetheless, the drop includes a short-term recovery — of around 15% when measured from BNB’s local low of $220.60. This rebound coincides with a slew of uplifting news updates in the crypto sector, namely BlackRock’s Bitcoin ETF application with the SEC.

But BNB critics accuse Binance of artificially pumping the token’s price.

Binance, BNB, and Lots of Price Manipulation Accusations

In June, market analyst ’52kskew’ accused Binance of manipulating the BNB market.

The analyst estimated that Binance had sold its Bitcoin (BTC) holdings for Tether (USDT) and had channeled the proceedings to buy BNB.

Furthermore, 52skew noted that Binance converts its BNB holdings to BUSD, its native US dollar-pegged stablecoin. Then, the exchange converts its BUSD to repurchase Bitcoin and USDT, effectively concluding the cyclical exchange process.

In the analyst’s opinion, these cyclical actions classify as market manipulation.

For reference, market manipulation in the context of cryptocurrencies refers to intentional activities aimed at artificially influencing the price or trading volume of a cryptocurrency or a group of cryptocurrencies for personal gain. 
In the case of cyclical exchange manipulation, it typically involves a coordinated effort by individuals or entities to create the illusion of market activity and price movement. That's done by continuously trading the same assets back and forth among themselves.

Further Suspicions

Market analyst ‘JW100x’ also noted that the alarmingly fast sales of Bitcoin serve to preserve BNB’s price as stable as possible. In his opinion, this whole situation resembles a shaky house of cards.

However, Binance refuted claims of any intended effort to keep BNB afloat. Binance CEO Changpeng Zhao claims that anybody can track chart movements.

Some Interesting On-Chain Movements

Analysts at Lookonchain pointed out an interesting movement of funds on July 11, 2023. Through their tracking efforts, they discovered that a massive whale deposited about $35 million worth of BNB to Binance.

The platform reports that these transactions were conducted through four Binance deposit addresses. However, it also notes that the entities behind the transactions could be non-Binance entities, mainly individuals that may want to participate in the Arkham (ARKM) token sale round.

ARKM has a limited purchase cap of $300,000 per account, meaning individuals could use multiple accounts to bypass the limitation.

The post Binance’s BNB Recovered 20% From Local Lows — But Manipulation Accusations Remain appeared first on CoinChapter.

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