• Binance is facing regulatory issues and its native token, BNB, has dropped by around 20%.
• Market analysts accuse Binance of artificially pumping the token’s price through cyclical exchange manipulation.
• Binance refutes these claims by saying that these blockchain movements are natural.
Binance in Regulatory Trouble
Since June 2023, Binance has found itself in more trouble by each coming week. Notably, the exchange received a lawsuit from the US Securities and Exchange Commission (SEC) on June 5. Since then, Binance’s native token, BNB, has dropped by around 20%.
BNB Recovers From Local Lows
Despite this drop, there has been a short-term recovery — of around 15% when measured from BNB’s local low of $220.60. This rebound coincides with a slew of uplifting news updates in the crypto sector, namely BlackRock’s Bitcoin ETF application with the SEC .
Manipulation Accusations Towards Binance
In June, market analyst ’52kskew’ accused Binance of manipulating the BNB market. The analyst estimated that Binance had sold its Bitcoin (BTC) holdings for Tether (USDT) and had channeled the proceedings to buy BNB. Furthermore, 52skew noted that Binance converts its BNB holdings to their native US dollar-pegged stablecoin called BUSD which is then pumped into BTC to suppress downside volatility so BTC can be bought back with USDT reserves. In this way they are able to manipulate prices and create an illusion of activity in order to benefit themselves personally.
Binace Refutes Manipulation Claims
Binance refutes these claims by saying that these blockchain movements are natural and not based on artificial manipulation as suggested by some critics.
Since last month’s SEC lawsuit against Binace , its native token’s price has dropped significantly but recovered recently along with other positive news updates in the crypto sector . There have been allegations made against Binace accusing it of price manipulation though they refute such claims stating that all movements are done naturally without any intention to manipulate prices .