In a strange chain of events, Binance founder Changpeng Zhao tweeted about the so-called ‘Binance Effect’ after a New Kind of Network’s (NKN) listing. He has since deleted the tweet, but the coin nonetheless experienced a major green candle just hours later.
This story starts with a tweet from earlier today which was deleted after 12 minutes. Luckily, Crypto_Deleted_Tweets (@CryptoDeleted) was able to capture it. In it, Zhao congratulated New Kind of Network (NKN) for being listed due to winning the community vote. He encourages people to ‘trade rationally’ and not to chase the so-called ‘Binance Effect.’
— Crypto_Deleted_Tweets (@CryptoDeleted) October 14, 2019
Changepeng Zhao and the Binance Effect
The fact that Zhao is talking about pumping coins on his own exchange, even going as far as calling it the ‘Binance Effect,’ is frankly pretty shady. One can easily see why this tweet was deleted just 12 minutes after it was posted.
However, what followed was apparently this so-called’ Binance Effect’ in action for NKN. As Beastlorion (@Beastlyorion) mentioned on Twitter, it seems like some major player made a market buy which created a massive green wick from 0.0000036 to 0.00000721 sats on the NKN/BTC pair.
— Beastlorion (@Beastlyorion) October 14, 2019
The pump seems to have had some legs, stabilizing around 0.000005 or so satoshis. However, the timing is curious and makes us wonder whether there were some greater forces at play rather than just some whale who wanted to accumulate.
Are the Two Connected?
Zhao should be wary of outright calling for pumps and the ‘Binance Effect’ given that he is trying to do good with regulators. However, the fact that this absurd green wick was posted just hours after his claim leaves some for the imagination. Keep in mind, though, that this has little to do with NKN directly.
Instead, this is yet another one of examples of Zhao’s antics — similar to what we’ve seen before when he falsely claimed that AliPay could be used to buy BTC on the exchange’s P2P platform, as previously reported by BeInCrypto. Alipay had to directly intervene by replying that Zhao was outright lying.
In short, the ‘Binance Effect’ may be manufactured and that may explain the absurd NKN pump.
What do you think of Changpeng Zhao? Is what he does on Twitter appropriate for the leader of an exchange? Let us know your thoughts below in the comments.
Images courtesy of Twitter.