The head of the largest crypto exchange Binance, Changpeng Zhao, was blamed for lowering the price of Bitcoin (BTC) amid regulatory pressures. According to Mike Alfred, a popular investor in the crypto community, Zhao is selling the asset to prop up the price of his Binance’s BNB token.
Popular Traders Claim CZ Used Bitcoin to Help Weak BNB Tokenomics
Alfred argues that Zhao is putting pressure on Bitcoin through his affiliated market makers. According to the investor, BNB’s ineffective tokenomics will cause it to fall below $200.
At press time, BNB is trading at $213.
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Alfred’s theory was supported by a popular trader Peter Brandt whose previous market predictions were correct. In a recent Twitter post, Brandt argued:
“I’ve been saying for years that Changpeng Zhao and his Binance is a global scam and BNB is just cheap fiat. Watch it all fall apart.”
Zhao Denies BNB Manipulation Allegations
Analyst MartyParty shares Alfred’s opinion that Zhao is behind the Bitcoin decline. He shared with subscribers his speculations on CZ’s maneuverings. According to the analyst, here’s what CZ’s modus operandi looks like.
Zhao sells Bitcoins from wallet bc1qm34lsc65zpw79lxes69zkqmk6ee3ewf0j77s3h for TUSD stablecoins. He then purchases BNB for TUSD, thereby maintaining the price of the Binance native token.
At the same time, MartyParty also believes that US regulators are allegedly trying to “squeeze” Zhao out of the crypto industry.
Recall that, in 2023, Binance faced unprecedented regulatory pressure. Due to the regulatory actions, the Binance USD (BUSD) stablecoin’s issuer stopped the coin’s minting.
Binance itself, meanwhile, has fallen into the crosshairs of the US Securities and Exchange Commission (SEC). The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the crypto exchange.
Earlier, there was a theory that Binance’s problems were payback for the collapse of once one of the largest crypto exchanges, FTX. Zhao’s tip triggered the crisis that eventually led to the demise of the trading platform.
The gist of the theory is that the collapse of FTX caused American politicians to lose their funding source. Allegedly to get back at Zhao, regulators set their sights on Binance.
According to Marty Party, Zhao’s business could fail in the same way as FTX.
Changpeng Zhao himself came forward to comment on MartyParty’s post. According to him, MartyParty’s theory has nothing to do with reality. The head of Binance urged participants in the crypto community to ignore FUD.
Recall earlier that the editorial staff of BeInCrypto collected in one review other reasons that could lead to the fall of Bitcoin.
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