Binance, the world’s largest cryptocurrency exchange, denied speculation that it has been selling disconnected immoderate holdings, contempt wide societal media claims amid the latest marketplace downturn.
The crypto marketplace experienced a important correction aft the $1.4 cardinal Bybit hack, which saw Bitcoin’s (BTC) terms descend to a debased of $78,197, past seen connected Nov. 10, 2024, Cointelegraph Markets Pro information shows.
BTC/USD, 1-year chart. Source: Cointelegraph
Following the decline, societal media speculation arose that immoderate of the largest crypto firms, including Binance, had caused the marketplace clang by selling their token holdings successful over-the-counter (OTC) trades.
Source: MartyParty
Binance has refuted the claims, saying they stem from a misunderstanding of its relation arsenic an exchange. “Binance hasn’t ‘dumped’ oregon ‘sold’ ample amounts of tokens arsenic immoderate tweets person wrongly claimed,” a Binance spokesperson told Cointelegraph.
“They are misunderstanding what Binance does arsenic an exchange, which is we simply assistance users lucifer trades,” they added.
Some of the speculation came aft information arose of marketplace makers withdrawing ample amounts of Solana (SOL) from Binance blistery wallets, starring crypto investors to falsely presume that this was the speech selling its holdings.
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Market makers determination their assets according to “own strategies”
Crypto marketplace shaper Wintermute withdrew over $38.2 cardinal worthy of Solana from Binance successful the 24 hours starring up to 9:02 americium UTC connected Feb. 24, Arkham Intelligence information shows.
Wintermute transfers from Binance blistery wallet. Source: Arkham Intelligence
The transfers occurred days up of Solana’s $2 cardinal token unlock, which is acceptable to merchandise implicit 11.2 cardinal SOL tokens into circulation connected March 1.
However, akin marketplace makers run based connected their ain strategies, unrelated to the world’s largest exchange, the Binance spokesperson explained, adding:
“We person nary visibility into our users’ decisions, including marketplace makers who determination their assets according to their ain strategies. So portion blockchain transparency is 1 of the champion things astir crypto, it’s important not to leap to conclusions astir screenshots of transactions.”
“As we ever promote our users to bash their ain research, we promote the assemblage to recognize much astir the relation of an exchange” and “what marketplace makers do,” added the spokesperson.
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Still, manufacture watchers stay acrophobic astir selling unit that whitethorn travel with Solana’s forthcoming token unlock.
Crypto expert Artchick.eth noted that implicit the adjacent 3 months, much than 15 cardinal SOL — worthy astir $2.5 cardinal — volition participate circulation. Many of these tokens were purchased astatine $64 per SOL successful FTX’s auctions by firms specified arsenic Galaxy Digital, Pantera Capital and Figure.
Similarly, crypto trader RunnerXBT mentioned that it was a “dangerous” play to bargain Solana, highlighting that Galaxy Digital, Pantera and Figure basal to summation $3 billion, $1 cardinal and $150 million, respectively, successful unrealized profits erstwhile their SOL unlocks.
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