Binance refuted social media claims that it is offloading its Ethereum (ETH) and Solana (SOL) holdings.
On Feb. 26, Binance’s customer support team addressed the speculation on X (formerly Twitter), stating that the exchange is not engaging in large-scale token sales.
The firm clarified that it functions solely as a marketplace that facilitates transactions, with no control over users’ trading decisions, including those of market makers.
The exchange explained that some market participants move assets as part of their trading strategies, but Binance does not engage in dumping tokens.
Binance stated:
“Binance hasn’t ‘dumped’ or ‘sold’ large amounts of tokens as some tweets have misunderstood. As an exchange, we simply help users match trades and we have no visibility into our users’ decisions, including market makers who may move their assets according to their strategies.”
Considering this, Binance advised users against drawing conclusions based on transaction screenshots. It highlighted the importance of recognizing trading strategies that could be misinterpreted as market manipulation.
It concluded:
“While blockchain transparency is one of the best things about crypto, it’s important not to jump to conclusions about screenshots of transactions. Learn to recognize FUD and we also encourage the community to learn more about what market makers do.”
The rumors
Over the past few days, crypto influencers with large followings, including Marty Party and Jacob King, alleged that Binance was dumping its Solana and Ethereum for various reasons.
During the period, blockchain data from Arkham Intelligence revealed that the firm made significant transactions of over 100,000 SOL ($16.32 million) and 25,000 ETH ($80 million) to Wintermute.
This fueled accusations that the exchange might be involved in price manipulation or selling assets to cover its $4.3 billion settlement with the US Department of Justice (DOJ).
Mentioned in this article
Read the full article here