Binance, the world’s largest cryptocurrency alternate, denied hypothesis that it has been promoting off some holdings, regardless of widespread social media claims amid the most recent market downturn.
The crypto market skilled a big correction after the $1.4 billion Bybit hack, which noticed Bitcoin’s (BTC) value sink to a low of $78,197, final seen on Nov. 10, 2024, Cointelegraph Markets Pro information reveals.
BTC/USD, 1-year chart. Supply: Cointelegraph
Following the decline, social media hypothesis arose that a few of the largest crypto corporations, together with Binance, had brought on the market crash by promoting their token holdings in over-the-counter (OTC) trades.
Supply: MartyParty
Binance has refuted the claims, saying they stem from a misunderstanding of its position as an alternate. “Binance hasn’t ‘dumped’ or ‘offered’ giant quantities of tokens as some tweets have wrongly claimed,” a Binance spokesperson advised Cointelegraph.
“They're misunderstanding what Binance does as an alternate, which is we merely assist customers match trades,” they added.
Among the hypothesis got here after information arose of market makers withdrawing giant quantities of Solana (SOL) from Binance sizzling wallets, main crypto traders to falsely assume that this was the alternate promoting its holdings.
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Market makers transfer their belongings based on “personal methods”
Crypto market maker Wintermute withdrew over $38.2 million price of Solana from Binance within the 24 hours main as much as 9:02 am UTC on Feb. 24, Arkham Intelligence information shows.
Wintermute transfers from Binance sizzling pockets. Supply: Arkham Intelligence
The transfers occurred days forward of Solana’s $2 billion token unlock, which is about to launch over 11.2 million SOL tokens into circulation on March 1.
Nevertheless, related market makers function primarily based on their very own methods, unrelated to the world’s largest alternate, the Binance spokesperson defined, including:
“We now have no visibility into our customers’ choices, together with market makers who transfer their belongings based on their very own methods. So whereas blockchain transparency is likely one of the finest issues about crypto, it’s essential to not leap to conclusions about screenshots of transactions.”
“As we at all times encourage our customers to do their very own analysis, we encourage the group to know extra concerning the position of an alternate” and “what market makers do,” added the spokesperson.
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Nonetheless, trade watchers stay involved about promoting stress which will include Solana’s forthcoming token unlock.
Crypto analyst Artchick.eth noted that over the following three months, greater than 15 million SOL — price about $2.5 billion — will enter circulation. Many of those tokens have been bought at $64 per SOL in FTX’s auctions by corporations reminiscent of Galaxy Digital, Pantera Capital and Determine.
Equally, crypto dealer RunnerXBT mentioned that it was a “harmful” interval to purchase Solana, highlighting that Galaxy Digital, Pantera and Determine stand to realize $3 billion, $1 billion and $150 million, respectively, in unrealized income as soon as their SOL unlocks.
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