- Binance faces accusations of manipulating crypto prices by allegedly driving altcoins to extreme lows before buying them back at discounted rates.
- Critics argue that Binance lists questionable projects, using retail investors as exit liquidity while failing to support long-term, valuable initiatives.
Binance, the world’s largest cryptocurrency exchange, is once again in the spotlight following accusations of price manipulation and unethical listings. Several prominent figures in the crypto community have called out the exchange, alleging that it has been systematically wiping out altcoins over the past few years.
Community Figures Accuse Binance of Market Manipulation
Amonyx, a well-known crypto analyst, voiced his frustration on X, claiming that Binance has been responsible for the downfall of numerous altcoins. “You’ve wiped out all altcoins for the past three years. Enough is enough, truly enough,” he stated.
Another trader echoed similar sentiments, noting that “every crypto” asset purchased with Binance Coin (BNB) had “got rugged.” Meanwhile, Butcher, another major crypto figure, pointed out that all altcoins launched by Binance were now down by 95%, suggesting a pattern of severe price depreciation.
Market Makers and Forced Liquidations
Some critics argue that Binance and other centralized exchanges are using market makers to manipulate prices. Rahul, the founder of Emperium NFT, alleged that Binance artificially drives crypto prices to extreme lows, forcing mass liquidations before purchasing the same assets at bargain prices.
“Binance and other CEXs manipulate prices to their ultimate lows, causing panic and liquidations,” Rahul explained. This strategy allegedly enables Binance to acquire coins at deeply discounted rates while pushing retail investors out of the market.
CZ’s Response and Community Backlash
Amidst the growing frustration, Binance founder Changpeng “CZ” Zhao addressed the controversy, stating, “In crypto, too much money is spent chasing small, quick gains. Focus on ethical teams that build for the long term.”
However, his comments did little to ease concerns. Many in the crypto space responded by calling on Binance to take more responsibility for the projects it lists. One user argued that Binance should support “worthy teams” instead of “useless meme coins,” while another suggested that Binance is knowingly listing projects that treat retail investors as exit liquidity.
Will Binance Address These Allegations?
As of now, Binance and CZ have yet to issue an official response to the accusations. The debate over centralized exchanges and their role in market manipulation continues, leaving many crypto investors questioning the integrity of major trading platforms.
Is Binance truly engaging in price manipulation, or are these allegations fueled by market frustrations? Either way, the crypto community is demanding answers.
