Binance CEO Changpeng Zhao, commonly known as CZ, has responded to allegations of a significant sell-off of Bitcoin (BTC) by Binance, which were linked to a 7% price drop. CZ addressed the accusations on Twitter and shared a thread by a user named ZkHopium, who presented a detailed analysis disproving the claims.
The analysis focused on the Binance Coin (BNB) liquidation on Venus Protocol, explaining that it occurred on October 6th, 2022, on the Binance Smart Chain. It detailed the movement and burning of over 2 million BNB, which effectively removed them from circulation. Venus Protocol designated the BNB Chain as the sole liquidator for the loan, with liquidations being performed manually and not involving market-dumping bots.
CZ appreciated the research presented by ZkHopium and stressed that a $30 million liquidation’s impact on Bitcoin’s price is insignificant. He stated that Binance does not issue BTC and most rewards are given in BNB. The alleged fear of a significant BTC price impact is unfounded, as $30 million represents less than 0.001% of BTC’s daily trading volume.
At the time of writing, BNB is trading at $217, with a marginal 0.2% decline over the past 24 hours.
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