Binance addresses ‘dumping ETH and SOL’ accusations

Binance finally reacts to online merchants accusing the exchange of market manipulation by “spilling” millions of soil and ETH tokens via Wintermute.

In a recent job Shared by the Binance customer support account, Binance responded to a trader requesting data on the channel which showed that the hot binance portfolio “sends” millions of Solana (GROUND) and Ethereum (Ethn) Tokens of his assets on February 24. The merchant accused the exchange of “everyone’s spill” by unloading the tokens.

Respond to the comment, Binance denied charges that he had “thrown” or “sold” millions of tokens. He said that many traders had simply “misunderstood” chain transactions related to Wintermute.

“As a scholarship, we simply help users to make businesses and we have no visibility on the decisions of our users, including market manufacturers who can move their assets according to their strategies,” said Binance in a recent article.

The exchange warned the merchants not to “take conclusions on the screenshots of transactions” and that they should learn to recognize the tactics that inspire fear, uncertainty and doubt on the market .

In addition, Binance has urged its users to learn more about the operation of market manufacturers like Wintermute in order to better understand their role in the facilitation of liquidity.

On February 24, data on Arkham Intelligence showed a binance mobile At least 103,570 soil ($ 16.32 million at the time) and around 25,000 ETH ($ 80 million) at the Wintermute market manufacturer. Many traders have interpreted this as a binance selling or pouring these tokens from their cryptographic participations via Wintermute.

Investors and merchants saw the event as an indication that Binance was preparing market volatility, which could influence the liquidity and trading of volumes for soil and ETH. A day later, the cryptography market collapsed As the Bitcoin price fell below $ 90,000, leading to liquidations that exceeds $ 1 billion.

At the time, traders accused binance, parbit and other major centralized exchanges of “manipulation” of the market with massive sales and a price cap. However, there is no conclusive evidence in support of these claims.

In a link shared by Binance in parallel with its response, the exchange said that it uses a market surveillance program on its platform which acts to detect and prevent market manipulation and ensure “fair trade environment”.

Why did Binance sent tokens to Wintermute?

Market manufacturers are companies or entities specializing in the supply of liquidity on the cryptography market by passing purchase and sale orders, thus tightening the deviations from BID-ASK and allowing higher trading activities. Market manufacturers hold an important role in the cryptography market because they absorb significant orders, reduce price reductions and contribute to market stability.

Exchanges like Binance generally combine with market manufacturers by providing them with bonus tokens or encouraging market manufacturers to permanently increase their inventory. In doing so, merchants like Wintermute can improve liquidity on the platform.

An analyst on x explain This binance did not sell tokens in Wintermute, rather than Wintermute withdrew the tokens of the assets of Binance in order to maintain the liquidity of the market.