Binance Denies Accusations of Market Manipulation Amid ETH and SOL Transfers
Bitcoin dropped below $90,000 following a significant market correction. Binance is facing accusations from traders who believe the exchange manipulated the market by transferring large amounts of Ethereum and Solana tokens to Wintermute, a liquidity provider.
Key Points
- On February 24, Binance's hot wallet transferred over 103,570 SOL (worth $16.32 million) and 25,000 ETH (worth $80 million) to Wintermute.
- The total crypto market cap fell from $3.14 trillion to $2.93 trillion, a decline of nearly 7%.
- Traders accused Binance of dumping tokens, which the exchange denied, stating they facilitate trades without visibility into user actions.
- Binance cautioned against jumping to conclusions based on transaction screenshots and highlighted the potential for FUD to worsen market conditions.
- Market makers like Wintermute play a crucial role in providing liquidity and stabilizing trading activity.
This incident has contributed to heightened scrutiny of Binance's operations and market practices.