Binance refutes accusations of dumping Ethereum and Solana, clarifying that transactions with Wintermute were standard liquidity operations.
Binance Responds to Dumping Allegations
Binance has denied accusations that it manipulated the market by offloading millions of Ethereum (ETH) and Solana (SOL) tokens.
Can you explain why you send so much sol and ETH to winter mute to dump on everyone.. Is it to pay the doj fine/crash the price/ arb/cover expected sales ect..
On Feb. 24, traders pointed to on-chain data showing Binance moving 103,570 SOL ($16.32M) and 25,000 ETH ($80M) to market maker Wintermute. This sparked concerns that Binance was “dumping” tokens, triggering market volatility.
Hello there, Binance hasn’t “dumped” or “sold” large amounts of tokens as some tweets have misunderstood. As an exchange, we simply help users match trades and we have no visibility into our users’ decisions, including market makers who may move their assets according to their…
Binance: “No Market Manipulation”
In a response via its customer support account, Binance stated that traders misunderstood the transactions. The exchange explained that it merely facilitates trades and does not control user decisions, including those of market makers.
Wintermute’s Role in Market Liquidity
Binance clarified that Wintermute withdrew the tokens as part of its market-making activities, which help maintain liquidity. Market makers absorb large orders, reducing price fluctuations and ensuring smooth trading.
The controversy comes amid a broader market downturn, with Bitcoin dropping below $90K and over $1B in liquidations. Binance advised traders to avoid speculation and recognize misinformation tactics in the crypto space.
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