Binance CEO Refutes Bitcoin Price Manipulation Allegations
The cryptocurrency industry has been buzzing with speculation following the October 10 market crash, which resulted in a staggering $20 billion liquidation. Binance’s founder and CEO, Changpeng Zhao (widely known as CZ), took a strong stand to address allegations of price manipulation during this event.
Market Crash Caused by Global Tariff News
During a recent Ask-Me-Anything (AMA) session, CZ clarified that the sharp decline in Bitcoin prices was not connected to Binance’s operations. Instead, it was triggered by global tariff announcements that created widespread panic in financial markets. Addressing users’ concerns, CZ emphasized that accusations linking Binance to the price drop were “misleading and incorrect.” He pointed out that the market crash coincided with the news, proving no link to the exchange itself.
Binance’s Neutral Role in Crypto Trading
Responding to claims of benefiting from market volatility, CZ made Binance’s stance clear: the platform does not engage in trading for profit. “We don’t buy or sell crypto to make money from price changes,” CZ stated. He reassured users that Binance’s purpose is to offer a secure trading platform for users, not to speculate or influence market prices. He further stressed that neither Binance nor its team profited from the crash.
Bitcoin’s Scale Makes Manipulation Unrealistic
CZ dismissed the idea of manipulating Bitcoin prices as impractical, describing it as “unrealistic.” With Bitcoin now a nearly $2 trillion market, he explained that influencing its value would require risking hundreds of billions of dollars. “I don’t think anyone on the planet, including us, has the capacity or desire to take such a risk,” CZ added.
Binance Regulated Under Abu Dhabi Global Market
Highlighting Binance’s adherence to strict regulations, CZ noted that the company operates under the guidelines of the Abu Dhabi Global Market (ADGM). Compliance teams and oversight regulators review all trading activity on the platform, making manipulation virtually impossible. Binance’s adherence to these strict protocols underscores its commitment to maintaining transparency and trustworthiness in cryptocurrency trading.
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