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Binance in the spotlight: CZ reacts to BNB!

Mon 21 Aug 2023 ▪ 4 min of reading ▪ by Fenelon L.
Getting informed Crypto regulation

So it’s no rumor: BNB must under no circumstances give up the $212 mark, and Binance CEO CZ is in the front line to defend it. The slightest deviation could precipitate an imminent liquidation, with unpredictable consequences for the crypto market.

Binance in the spotlight

Tension mounts around the $212 mark and the issues at stake

Since the weekend, a rumor has been swirling on Twitter: Binance, one of the most influential exchange platforms in the crypto ecosystem, could find itself in danger of liquidation. However, the truth goes far beyond mere speculation.

It’s clear that the value of BNB has failed to break the $212 barrier. The reason is complex. It would appear that Binance had taken out a loan backed by BNB, with a liquidation condition as soon as the price reached this fateful mark. Although this threshold had been adjusted to $220 following the introduction of margin in June, this reality put CZ and its team in a tricky position.

Strategies Unveiled

The spotlight is on CZ, which recently broke his silence. Observers of the crypto world are wondering whether Binance’s future hangs on this delicate situation.

Sources insinuate that CZ has taken action to swap BTC for TUSD, while simultaneously buying BNB, in a bid to prevent the crypto from dipping below the $212 mark.

These moves are reminiscent of the cunning game Sam Bankman-Fried played to keep FTX’s FTT afloat. It’s a move that’s bound to capture the attention of a crypto community that still remembers the disastrous consequences of such actions, as suffered by the late, ailing FTX platform.

The debate has gone viral on Twitter, prompting insightful comments from crypto experts. Marty highlights that BNB’s health rate was supported in June to the tune of $60 million, influencing the liquidation threshold set at $212.

CZ breaks his silence

CZ’s riposte was not long in coming. While questioning the famous “magic number” of $212, Binance’s CEO supports his position by pointing out the fluid and changing nature of the BNB price.

And where does the magic figure of $212 come from? The BNB price is determined by the market. A $30 million buyback represents less than 4% of a single day’s volume.

In short, the story of Binance and BNB transcends the simple notion of a liquidation threshold. It reflects a complex web of issues facing exchange platforms in the crypto landscape. The balance between internal and external factors plays a major role in maintaining stability and trust.

The saga continues, as unfavorable news continues to pile up for the platform, which has to deal with the situation of Checkout.com, a credit card processing company, having recently terminated its contract.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.