Binance continues to struggle as regulatory pressures and market uncertainties emerge. Now, allegedly, the giant crypto exchange is selling Bitcoin to strengthen BNB.
Binance Coin (BNB) in free fall
cryptocoin.com As you follow, BNB has witnessed hard sales this year. The token price has dropped more than 30% since the beginning of the year. Allegedly, Binance is selling Bitcoin to boost the price of the native cryptocurrency BNB. Binance is facing an uphill battle to maintain its dominant position in the market amid increasing regulatory pressure and accusations of Bitcoin dumping.
Meanwhile, Binance Coin (BNB) has dropped below its 200-week Moving Average for the first time. It has raised concerns about potential significant losses, especially among altcoins that rely on the BEP20 and BEP2 token systems. In this environment, the value of the leading crypto Bitcoin fell below $ 26 thousand. This development has caused concern and uncertainty in the crypto money world. The claims about BNB also came amid a broad market correction.
BNB price. Source: CoinMarketCapIs Binance selling Bitcoin to save BNB?
The situation has been exacerbated by reports of Binance allegedly dumping customers’ Bitcoin to support the BNB token. Crypto influencer WhaleChart first mentioned these claims on social media platform X. Also, several Binance users later complained that they were unable to withdraw their BTC due to the temporary suspension of withdrawals. However, no official confirmation of these reports has yet been made. This is why the crypto community is divided on this issue.
BREAKING:
Binance is allegedly selling Bitcoin to support the price of their own token BNB
— Whale (@WhaleChart) August 22, 2023
Giant stock market is experiencing regulatory problems!
Binance has been under constant regulatory scrutiny, especially since the collapse of FTX and Alameda Research last year. In March, Binance faced a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC) alleging illegal operations and a lack of appropriate compliance measures. The situation worsened further when the US SEC accused Binance and its CEO, Changpeng Zhao (CZ), of violating securities laws.
Due to increased regulatory pressure, Binance has lost key partnerships, as well as with London-based credit card processing company Checkout.com. Such disruptions have impacted Binance’s ability to offer fiat-to-crypto services. Thus, it worsened its position in the market.
Bitcoin strategy of the stock market
Binance has turned to key Bitcoin assets to counter the growing selling pressures. Recent reports suggest that Binance has made a move to stop the decline in BNB prices. Accordingly, the exchange has been resorting to Bitcoin sales in the last few days. Binance’s Bitcoin strategy has come amid concerns over alleged Russian users helping them move money abroad in violation of international sanctions. With the liquidation of a crypto loan secured with $130 million worth of BNB on decentralized finance protocol Venus approaching, Binance needs to exercise caution to avoid cascading liquidations and unnecessary market damage.
Meanwhile, Binance’s current challenges underscore the complexity of the cryptocurrency market. It also highlights the need for responsible practices and regulatory compliance. The exchange needs to address these concerns to regain investor confidence. It is also imperative that these concerns be addressed in order to ensure the stability of both the token and the crypto ecosystem.
