In <\/span>response <\/span><\/a>to mounting speculation and accusations circulating within the crypto community, Binance CEO Changpeng Zhao (CZ) has addressed allegations of a significant sell-off of Bitcoin (BTC) by Binance. These allegations have been linked to a 7% BTC price drop.\u00a0<\/span><\/p>\n CZ took to Twitter to respond, reposting a <\/span>thread <\/span><\/a>by a user named ZkHopium, who provided a detailed analysis debunking the claims and highlighting the fundamental basis of the situation.<\/span><\/p>\n The thread by ZkHopium sheds light on the events surrounding the Binance Coin (BNB) liquidation on Venus Protocol. It explains that the exploit occurred on October 6th, 2022, on the Binance Smart Chain (BSC), creating 2 million BNB.\u00a0<\/span><\/p>\n Of this amount, 900,000 BNB were deposited on Venus Protocol to borrow approximately $150 million worth of USDT and USDC. In response, the BNB chain burned more than 2 million BNB, equivalent to around $550 million at the time, effectively removing these tokens from circulation.<\/span><\/p>\n To facilitate the liquidation process, Venus Protocol passed a governance proposal, designating BNB Chain as the sole liquidator for the loan. BNB Chain then funded the liquidator\u2019s wallet with 30 million BUSD in December 2022, an additional 30 million USDT in June 2023, and another 30 million USDT on August 21, 2023.<\/span><\/p>\n The liquidation mechanism of Venus Protocol involves a collateral factor or liquidation threshold. When triggered, liquidators can gradually liquidate up to 50% of the collateral, receiving an additional 10% worth of liquidated collateral as fees.\u00a0<\/span><\/p>\n ZkHopium\u2019s analysis highlights several significant factors that make this case unique. Firstly, only one liquidator is not incentivized to engage in market dumping. Secondly, the liquidations are performed manually, without the involvement of bots front-running the process.\u00a0<\/span><\/p>\n Lastly, given the substantial loan size, the liquidation tranches are expected to be much lower than the 50% threshold.<\/span><\/p>\n Addressing the allegations, CZ expressed his appreciation for the detailed research presented by ZkHopium and emphasized the \u201cinsignificance\u201d of a $30 million liquidation\u2019s impact on Bitcoin\u2019s price.\u00a0<\/span><\/p>\n CZ stated that Binance does not issue BTC and that most rewards are given in BNB. He highlighted that the alleged fear of a significant BTC price impact is unfounded, as $30 million represents less than 0.001% of BTC\u2019s daily trading volume.<\/span><\/p>\n At the time of writing, BNB is trading at $217, as the chart above indicates. However, it has experienced a marginal decline of 0.2% over the past 24 hours.<\/span><\/p>\n The largest cryptocurrency in the market by market cap, Bitcoin, currently valued at $26,000, has remained relatively stagnant, experiencing a decline of 2.4% after briefly touching the $26,700 mark.\u00a0<\/span><\/p>\n Despite the current low levels of volatility, Keith Alan, co-founder of the research and analysis firm Material Indicators, has <\/span>noted <\/span><\/a>the following regarding the market situation:\u00a0<\/span><\/p>\n Economic reports released this morning did not significantly impact volatility; however, they will contribute to the narrative influenced by Jerome Powell\u2019s upcoming speech at Jackson Hole on Friday.<\/span><\/p>\n<\/blockquote>\n As anticipation builds for Federal Reserve Chairman Jerome Powell\u2019s comments at the Jackson Hole Symposium, the Bitcoin market is beginning to show signs of increased activity. <\/span><\/p>\n Keith Alan suggests that the economic reports, although not immediately affecting volatility, will shape Powell\u2019s narrative during his speech.\u00a0<\/span><\/p>\n This anticipation will likely lead to heightened volatility as the BTC market approaches the weekend. Traders and investors are bracing themselves for potential market fluctuations as Powell\u2019s speech unfolds, with the expectation that his statements could significantly impact the cryptocurrency market.<\/span><\/p>\n Featured image from iStock, chart from TradingView.com<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" In response to mounting speculation and accusations circulating within the crypto community, Binance CEO Changpeng Zhao (CZ) has addressed allegations of a significant sell-off of Bitcoin (BTC) by Binance. These allegations have been linked to a 7% BTC price drop.\u00a0 CZ took to Twitter to respond, reposting a thread by a user named ZkHopium, who […]<\/p>\n","protected":false},"author":2,"featured_media":142051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-142050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/142050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=142050"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/142050\/revisions"}],"predecessor-version":[{"id":146759,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/142050\/revisions\/146759"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/142051"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=142050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=142050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=142050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}CZ Debunks Allegations Of Bitcoin Dumping<\/span><\/h2>\n
BTC Hovers Around $26,000 Amid Minor Dip<\/span><\/h2>\n
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