Binance, the world’s largest cryptocurrency trade, denied hypothesis that it has been promoting off some holdings, regardless of widespread social media claims amid the newest market downturn.
The crypto market skilled a big correction after the $1.4 billion Bybit hack, which noticed Bitcoin’s (BTC) worth 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 number of the largest crypto corporations, together with Binance, had brought about 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 function as an trade. “Binance hasn’t ‘dumped’ or ‘offered’ massive quantities of tokens as some tweets have wrongly claimed,” a Binance spokesperson instructed Cointelegraph.
“They’re misunderstanding what Binance does as an trade, which is we merely assist customers match trades,” they added.
A number of the hypothesis got here after information arose of market makers withdrawing massive quantities of Solana (SOL) from Binance scorching wallets, main crypto traders to falsely assume that this was the trade promoting its holdings.
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Market makers transfer their property in response to “personal methods”
Crypto market maker Wintermute withdrew over $38.2 million value 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 scorching pockets. Supply: Arkham Intelligence
The transfers occurred days forward of Solana’s $2 billion token unlock, which is set to launch over 11.2 million SOL tokens into circulation on March 1.
Nonetheless, related market makers function primarily based on their very own methods, unrelated to the world’s largest trade, the Binance spokesperson defined, including:
“We’ve got no visibility into our customers’ selections, together with market makers who transfer their property in response to their very own methods. So whereas blockchain transparency is probably the greatest issues about crypto, it’s necessary not to leap to conclusions about screenshots of transactions.”
“As we all the time encourage our customers to do their very own analysis, we encourage the neighborhood to grasp extra in regards to the function of an trade” and “what market makers do,” added the spokesperson.
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Nonetheless, business watchers stay involved about promoting stress that will include Solana’s forthcoming token unlock.
Crypto analyst Artchick.eth noted that over the following three months, greater than 15 million SOL — value about $2.5 billion — will enter circulation. Many of those tokens have been bought at $64 per SOL in FTX’s auctions by corporations comparable to 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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Cointelegraph by Zoltan Vardai Binance is not ‘dumping’ Solana and other token holdings — Spokesperson cointelegraph.com 2025-02-28 13:15:35
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