What is BNB? A question that deserves to be (re)asked, following the numerous regulatory attacks against the Binance platform, initially at the origin of the creation of this “native” cryptocurrency. Because in February 2022, the Binance Smart Chain (BSC) became the BNB Chain in order to rid this network of all traces of Binancewhen again it had been created from scratch by this exchange.
Suddenly, the BNB cryptocurrency was demoted in the process to the rank of a simple means of paying the fees of its eponymous DeFi network. An important change of destination which nevertheless went almost unnoticed in a cryptocurrency market that keeps talking about the “Binance Coin.” And as much to say that it is not Changpeng Zhao (CZ) who will come to enlighten the lantern of its investors on this delicate subject. All the more so if we consider that the Binance platform would be supporting its price to avoid a major liquidation.
BNB – Facing $210 Million Liquidation
When it comes to the Binance platform, the ramifications and strategic changes – whether or not related to regulatory pressures – end up losing a lot of investors. With at the center of this whirlwind, the famous BNB cryptocurrency supposed to make up the bulk of Changpeng Zhao’s (CZ) portfolio alongside Bitcoin. The latter placed at the top of the list of famous financial securities identified by the Securities and Exchange Commission (SEC) of the United States. And it is in the heart of this identity crisis of the altcoins market that everything gets even more complicated…
Indeed, the sharp drop triggered following the identification of new altcoins as financial securities did not spare the BNB cryptocurrency. Because the latter displays over the last 10 days a negative balance of around -25% which contrasts with its curve worthy of a stablecoin for months and a price stuck at around $315.
A selling pressure whose main consequence is to plunge the BNB towards the fateful level of $220. A drop in relation to the rest of the cryptocurrency market, with one difference. This threshold represents the limit not to be crossed at the risk of triggering the liquidation of an open position on the Venus protocol estimated at $210 millionaccording to data from the DefiLlama website.
BNB – A price backed by Binance?
A disaster scenario that could well be the problem of the Binance platform, despite its repeated desire to blur its maternity ties. Because according to some rumors, it seems that the latter is trying to support the BNB cryptocurrency in order to avoid the worst. Or more clearly to operate a complex “market manipulation” for this purpose.
In any case, this is what the Twitter account 52kskew assumes in a publication of June 13, “proof” in support. The pitch of this case: a gradual resale of BTC whose profits would be injected into an “aggressive” purchase of BNB to keep its price above $220. And in order to demonstrate this theory, the Cumulative Volume Delta (CVD) indicator is singled out in connection with the Binance spot market. Indeed, the Bitcoin curve shows a gradual decline considered to be inversely proportional to the rise of BNB over the same period.
“Looks like BTC is being sold for USDT reserves. These reserves have then been aggressively injected into BNB since May 27. BNB is then sold against BUSD to remove the volatility of BTC. Then, the BUSD is injected into the BTC to suppress the downside volatility so that it can in turn be traded for USDT. This is technically market manipulation. Binance is certainly up to something here to prevent BNB from collapsing as well as BTC.”
Obviously, Changpeng Zhao (CZ) is immediately intervened in order to shout at FUD with his famous 4 fingers in the air. Indeed, he asserts that “Binance did not sell BTC or BNB.” It would even seem – what is the report – that the exchange has “one more FTT wallet.” And in order to support his hypothesis, the CEO-founder of Binance explains that it “is amazing (that 52kskew) can know exactly who sold based on a simple price chart involving millions of traders.”
BNB – A position held by a hacker
And the real problem with this loan of $147.5 million in stablecoins made on the Venus lending protocol with collateral of 935,000 BNB – crux of this affair – rests on its initiator. Indeed, this huge position was opened as part of a BNB Chain hack perpetrated in October 2022. A sum that was then “frozen” by Binance in a way that is anything but decentralized, with the direct consequence of making it impossible for the hacker to come and settle this matter.
But nothing is completely settled yet. Because when it comes to Binance, “decentralization” is often accompanied by internal arrangements and backdoors. And this is exactly the case in this case, since in all likelihood there is a “white list” provided for this purpose on the BNB Chain. That’s to say an address capable of intervening in order to carry out this liquidation before it becomes critical. With the only condition that it be carried out in collaboration with “Binance and other players.” Some will see this as good news. Others, an umpteenth proof of the total absence of effective decentralization of this network.
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