There has been some pretty extensive washtrading at BNB to keep the price afloat during the past dips. BNB is acting just as FTT sometimes.

With all the eyes on Binance and CZ right now as the SEC lawuits has made many people very uncertain about how stable and collapse-proof Binance actually is in the worst conditions and they are right as every exchange, even the biggest one, is just a very risky game.

It becomes even more risky if the CEX is not even ready to show proof that their are not commingling funds as FTX was doing. Even the Proof of Reserves by Binance has been pretty debatable. With all of these red flags it is clear that you should be damn cautious with Binance. Even more if their CEO, CZ, is constantly on twitter trying to shut down any kind of news about them as “FUD“.

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BNB price chart during the week of the SEC filings

Here is one more massive redflag, during each price dip in the past weeks we had a massive volume increase, which usually during such dips means that people saw the price going down and are starting to panic-sell and thus the price moves lower. This did not happen here, instead the price suspicously stayed on about the same level moving sideways. A clear possibility of washtrading by CZ, trying to show that everything is alright to the investors.

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Very speculative comparison of BNB with FTT, by MitchellHODL that to some extent holds true

Furthermore, here is a comparison on BNB to FTT and both have one thing in common, they somehow held better than most other alts and even BTC, that even though we would literally know no person that seriously invests in BNB. It is clear that there has been some heavy washtrading to keep the price up from liquidation levels for their own loans or other.

There are redflags all over this story and I would at this point not even rule out a complete Binance collapse just as with FTX, no matter the size of Binance, which likely is also elevated through that extensive washtrading