Binance holds the world’s top position among cryptocurrency exchanges and rejects the idea that it caused the market downturn through active token sales. Social media users spread rumors shortly after Bitcoin prices plunged further because one crypto exchange lost $1.4 billion in a cyberattack.
On November 10, 2024 the market entered a severe decline when Bitcoin price dropped to $78,197. People talked that major cryptocurrency firms like Binance sold their assets through OTC trades because market values kept decreasing.
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Binance denied the rumors to explain that it operates solely as an exchange platform. The Exchange did not dump or sell substantial amounts of tokens because people misunderstood its operations.
Binance Responds To Market Speculation
Users make errors when they do not grasp how Binance works as an exchange platform. Its primary role is trade matching for customers.After Solana (SOL) left Binance hot wallets in substantial amounts market observers started theorizing Binance was selling its own assets.
The crypto market maker Wintermute took $38.2 million in Solana out of Binance over 24 hours on February 24 according to information from Arkham Intelligence. Significant pulls happened right before the scheduled March 1 release of 11.2 million SOL tokens equal to $2 billion.
Binance denies any involvement in these transactions because they happen after market makers conduct their business operations.
“We have no visibility into our users’ decisions, including market makers who move their assets according to their own strategies. So while blockchain transparency is one of the best things about crypto, it’s important not to jump to conclusions about screenshots of transactions.”
The spokesperson also said that their team advises users to study how exchanges work and what market makers do in this system.
The expertise of industry researchers indicates Solana’s upcoming token release could affect its performance. Crypto analyst Artchick.eth predicts sale of 15 million SOL tokens worth $2.5 billion into the market through the next three months. After FTX’s bankruptcy sale Galaxy Digital purchased SOL tokens for cheap and resold them to companies such as Pantera Capital and Figure at higher prices.
Crypto trader RunnerXBT identifies the ongoing situation as risky for Solana investors to enter this market. The ongoing unlocking of tokens from Galaxy Digital, Pantera Capital, and Figure will grant each firm $3 billion, $1 billion, and $150 million in profits. Despite market risks Binance protects its position by reminding investors to study crypto markets and carefully consider their investments.
