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- Online reports suggest that Binance may be selling its Bitcoins to support BNB’s price.
- BNB’s value has dropped more than 30% since the beginning of the year.
- Defunct crypto exchange FTX followed a similar strategy before its collapse last year.
Binance, the world’s largest crypto exchange by market capitalization, may be selling its customers’ Bitcoins in order to support the price of its native token BNB. The reports of Binance dumping customers’ BTC come amid a dramatic decline in BNB’s price, which took the token to a 14-month low of $207 earlier this week.
BREAKING:Binance is allegedly selling Bitcoin to support the price of their own token BNB— Whale (@WhaleChart) August 22, 2023
Crypto influencer WhaleChart took to X (formerly Twitter) earlier today to report that Binance was allegedly dumping BTC to support the price of its BNB token. While there were no sources to confirm the allegations, several Binance users on X complained that they were unable to withdraw their BTC from the crypto exchange due to a temporary suspension of withdrawals.
Binance’s terms of service state that it reserves the right to convert delisted digital assets into a different type of digital asset at its discretion. While this only applies to delisted assets, crypto influencer NotChaseColeman indicated that the crypto giant may be dumping customers’ BTC in order to purchase BNB and support its declining price.
The crypto community on X appeared divided on the allegations of BTC dumping by Binance. While supporters of the exchange refused to believe the allegations, others highlighted that the recent events may have pushed the crypto exchange into taking extreme measures. For instance, the suspension of Euro withdrawals through the Single Euro Payments Area (SEPA) system, which prevented users from withdrawing or depositing Euros.
One user highlighted that Binance’s alleged actions were similar to the playbook followed by Sam Bankman-Fried’s defunct FTX exchange before it went bankrupt last year. FTX attempted to sell customer assets in order to support the price of its native token FTT, but its actions culminated in a dramatic collapse that wiped out more than $8 billion of customers’ funds.
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