Reports of insider trading, Binance market manipulation, and the formation of a Death Cross signal cause the Binance coin price to decline.
Binance Coin price has been dropping significantly lately, and market players are left wondering what caused this abrupt decline. Holders are experiencing uncertainty due to BNB’s price fluctuating within a narrow range due to some downward pressure on the market.
Furthermore, Binance Exchange has been accused of manipulating the market, which has made matters more complex and raised investor concerns.
Is Market Manipulation The Cause Of Binance Coin Price Drop?
Concerns regarding Binance’s market practices have arisen due to the recent drop in BNB’s price, which coincides with accusations that it planned a price manipulation attack on the HyperLiquid platform. Binance has reportedly been connected to aggressive trading strategies used to manipulate the price of the memecoin JELLYJELLY.
According to Lookonchain, a colossal whale investor manipulated the price of JELLYJELLY memecoin on the Solana blockchain by using 124.6M $JELLY tokens worth $4.85M. The token’s price crashed after the whale’s massive $JELLY dump, forcing HyperLiquid’s liquidity provider (HLP) to take on a $15.3M passive short position (398M $JELLY).
Following the price collapse, the whale purchased $JELLY tokens, which cost HyperLiquid almost $12 million but restored market value. Given that both situations involve big exchanges possibly using liquidity to target rivals, this has been compared to the collapse of FTX.
According to a blockchain analysis by Zachxbt, money from Binance wallets was utilized to manipulate the price of JELLYJELLY. Binance’s rapid expansion of JELLYJELLY contracts sparked concerns that it intentionally manipulated the trading market to harm its rival, HyperLiquid.
MartyParty, an X user, claims that Binance’s choice to list perpetual JELLYJELLY contracts is a calculated move that will increase market pressure on HyperLiquid.
Binance Employee Suspended Due to Insider Trading Accusations
Due to several internal operational issues, Binance is still intensely criticized. An employee of Binance was suspended after it was alleged that they had used trades involving sensitive company data for their benefit.
The employee made money after the price increase by using confidential information from their job with BNB Chain to purchase tokens before the public launch. Binance acted quickly, suspending the worker and then confirming that there were no more insider trading activities within the company.
Because the employee’s actions are connected to allegations of market manipulation, they have raised questions about Binance’s operational integrity. Even though Binance handled the situation appropriately, this scandal increased market skepticism about the company’s business practices.
