In a recent tweet, Binance CEO Changpeng “CZ” Zhao dismissed rumors suggesting that the world’s largest cryptocurrency exchange, Binance, has been selling Bitcoin (BTC) in order to prevent the prices of Binance Coin (BNB) from falling below specific levels. CZ clarified that neither BTC nor BNB had been sold by Binance, and he even mentioned that they still held a bag of FTT, a different digital asset. He attributed the spread of these rumors to possible short interest among Crypto Twitter members. This article explores the rumors, CZ’s response, and the social media frenzy surrounding the topic.
Rumors of Binance Manipulating BNB Prices:
On Tuesday, popular traders @JW100x and @52kskew posted tweets suggesting a short-term correlation between BTC sell-offs and BNB purchases, which quickly gained significant attention on Twitter. Cumulatively, these tweets garnered over 3 million views. @52kskew’s tweet claimed that aggressive inflows of USDT reserves into BNB had been occurring since May 27th, and BNB was subsequently sold off for BUSD to suppress BTC volatility. According to the tweet, BUSD was then used to pump BTC and suppress its downside volatility, enabling it to be swapped out for USDT. @JW100x referred to this situation as a “total house of cards,” asserting that as spot Bitcoin was sold off, BNB was purchased, defending the $220 liquidation but also capping Bitcoin’s upside potential.
In response to these rumors, CZ took to Twitter to debunk the allegations. He emphatically stated that Binance had not sold any BTC or BNB and confirmed that they still held a bag of FTT, a different cryptocurrency. CZ further suggested that the rumors might have been fueled by short interest among members of the Crypto Twitter community. By addressing the issue directly, CZ aimed to clarify the situation and dispel any concerns about Binance’s actions.
Social Media Frenzy:
The tweets from @JW100x and @52kskew gained substantial traction on Twitter, quickly spreading throughout the cryptocurrency community. With over 3 million views combined, these posts captured the attention of many individuals interested in the crypto market. The allegations of Binance manipulating BNB prices sparked intense discussions and debates online, with users sharing their opinions on the matter. The social media frenzy exemplifies the power of social platforms in shaping public perception and influencing market sentiment.
Despite rumors suggesting that Binance had been selling Bitcoin to manipulate BNB prices, Binance CEO CZ firmly denied these allegations. CZ’s tweet addressed the rumors directly, asserting that Binance had not sold any BTC or BNB and attributing the spread of such rumors to potential short interest among Crypto Twitter members. The social media frenzy surrounding the topic highlights the impact of social platforms in shaping narratives and the need for accurate information to combat misinformation within the crypto space.