Binance CEO Changpeng Zhao denied media claims that the platform replenished its bitcoin reserves during the bear market.
Earlier, a wave of articles appeared in the media saying that due to the fall of the crypto market, Binance was buying up bitcoins in huge quantities. The rationale was given for the fact that the balance on the platform’s cold wallets increased by 101,266 BTC on June 18, when the bitcoin rate fell below $19,000.
According to the authors of the article, the purchase of BTC by the platform was made against the backdrop of increased pressure from bitcoin sellers, as prices for the first cryptocurrency fell to the lowest level.
“Information about the mass purchase of bitcoin is unreliable. The increase in the amount of BTC on the cold wallets of the exchange suggests that more and more users are making deposits. A journalist claiming that Binance is buying large volumes of bitcoin does not seem to understand the concept of cold wallets and cryptocurrencies used for conversion,” said Changpeng Zhao.
Recall that against the backdrop of a decline in the traditional stock market and rising inflation, bitcoin continued to fall in price, breaking the low of December 2020, and pulled ether and other cryptocurrencies with it. This probably provoked investors to buy BTC on a large scale.
Back in May, Changpeng Zhao urged investors in a falling market not to invest in one or two cryptocurrencies, but to diversify their portfolio as much as possible.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
