Although BNB has made its way to the top 10 cryptocurrencies, a crypto whale is warning of the potential dangers of BNB, allegedly it could be manipulated. What could this mean for BNB?
Is BNB Being Manipulated?
According to a tweet by @RipplePandaXRP, despite the bans and restrictions, BNB still hasn't plunged. While other cryptocurrencies are being affected by the bans and restrictions, it seems like BNB still remains okay. The tweet then ended with the question, "Manipulation?"
To this, Mr. Whale replied that they think so and that the chances of BNB actually being manipulated were notably "likely 99%." The whale then provides a brief explanation as to why the account thinks that BNB is being manipulated. With a lot of eyes on Cardano, there has not been a lot of talk about BNB.
Binance Changed Its BNB White Paper
According to Mr. Whale, BNB was basically created by Binance, which has already been proven to engage in widespread price manipulation schemes. There were no further articles or resources linked to the reply.
An article by ScamBinance even shares how Binance actually quietly changed its BNB white paper. It was noted in the article that Binance, the leading exchange when it comes to terms of trading volume, made edits to its Binance Coin or BNB white paper regarding the cryptocurrency's periodic burning of coins.
Is BNB Reliable?
The edits were reportedly made in secret, and there is now a lot of reason to believe that a whopping 90% of trading volumes are fictitious and could even be wound by bots. The document's mention has disappeared, noting the site allocates a massive 20% of its quarterly profit strictly for BNB buyback and the subsequent destruction of tokens through burning.
It was then stated by Changpeng Zhao, the founder of Binance, that Binance does not actually buy back its tokens on the market but simply burns BNB, which is apparently from the reserves of CZ itself. In his own opinion, the mention of the term "profit" within that part of the document actually brought BNB closer to the definition of security.
SEC Interest in Binance
This is what the exchange wants to avoid due to it being an interest by the SEC. The SEC is also interested in BNB as well as the other activities of the underground exchange Binance. The article then urges readers to take a look at the BNB white paper before and after the said changes.
ScamBinance noted that they took a detailed look into the whole Binance Coin or BNB token and even looked at the nature of what they called a "pseudo token" as well as the foundation in which Changpeng Zhao's empire of what they noted as "lies and deception." it was also noted that in particular, it was actually the mechanism for burning tokens that was not transparent.
The article then notes that the exchange can simply abandon this particular process at any time. The buyback concept is usually made to help keep and even increase the value of coins.
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Written by Urian B.