Binance, one of the leading cryptocurrency exchanges, is once again in the spotlight for some intriguing reasons. Recent reports suggest that the platform might be engaged in selling Bitcoin to bolster the value of its native cryptocurrency, Binance Coin (BNB).
This development comes at a time when the crypto exchange is grappling with a series of challenges, including limitations on fiat withdrawals in Europe due to issues with Single Euro Payments Area (SEPA) transfers.
The value of BNB, currently ranked as the fourth largest cryptocurrency by market capitalization, has shown a modest 2.7% increase within the day, now trading at $215.66 according to CoinGecko.
However, the past week witnessed a notable 7.9% decline in its price, reflecting the volatility that has become synonymous with the crypto market.
Allegations And Suspensions: Binance Users Left Stranded
Rumors surrounding Binance’s alleged utilization of customers’ Bitcoin to support the BNB token emerged after notable crypto influencer WhaleChart discussed these claims on the social media platform X (formerly Twitter).
BREAKING:
Binance is allegedly selling Bitcoin to support the price of their own token BNB
— Whale (@WhaleChart) August 22, 2023
Subsequently, multiple users of the exchange voiced their concerns about being unable to withdraw their Bitcoin due to a temporary suspension of withdrawals.
This situation has sparked a renewed debate about the extent to which such practices could impact market dynamics and investor confidence.
Furthermore, a recent price analysis revealed that BNB has dipped below its 200-week Moving Average, an occurrence that has set off alarms in the crypto space.
Bitcoin market cap at $506 billion today. Chart: TradingView.com
This development raises questions about potential losses not only for BNB but also for alternative coins (altcoins) dependent on the BEP20 and BEP2 token systems.
These uncertainties coincide with a broader market correction, exemplified by Bitcoin’s value plunging below $26,000 this week.
Partnerships Amid Turmoil: Binance.US And MoonPay Collaboration
As the company grapples with its challenges, its US-based counterpart, Binance.US, is actively seeking ways to fortify its offerings.
The platform recently announced a strategic partnership with crypto payment firm MoonPay, enabling users to acquire the U.S. dollar-pegged stablecoin Tether (USDT) for transactions.
This move, unveiled on August 22, designates USDT as the new “base asset” for all transactions on Binance.US. The collaboration with MoonPay emerges as a solution after Binance.US encountered disruptions in its relationship with banking partners.
Amidst these concerns, the exchange’s partnership with MoonPay to integrate USDT for transactions showcases its commitment to enhancing user experiences.
As the cryptocurrency market navigates through a period of volatility, industry participants are keenly observing how Binance’s actions and partnerships could shape the future landscape.
Featured image from Analytics Insight