Binance founder Changpeng Zhao (CZ), recently advised investors to hold their assets during market downturns. While CZ has been loved by the crypto community his post on X, previously Twitter, is getting heat from many users.
In the comment section, many users accused Binance of hypocrisy, alleging that the exchange itself has been offloading tokens while advising others not to sell. Social media is flooded with reactions from traders who believe Binance is contributing to the market downturn.
One user commented, “Stop dumping everything then, you scammer,” while another wrote, “Damn you, CZ! You scammed us—my savings are gone because of you.”
Binance’s customer support quickly responded to these claims, stating, “Binance hasn’t ‘dumped’ or ‘sold’ large amounts of tokens as some tweets have misunderstood. As an exchange, we simply help users match trades and have no visibility into our users’ decisions, including market makers who may move their assets according to their strategies.”
The company insists that blockchain transactions showing large fund movements do not necessarily indicate Binance selling. Instead, they claim these are user withdrawals, particularly by institutional players and market makers using Binance as a custodian or other services.
These accusations were not new. Back in February, Binance was accused with dumping BTC, ETH, and SOL for the purposes of market manipulation
The claims stemmed from large token transfers observed on-chain, but Binance denied any involvement, stating that the movements were user-driven, not exchange-led selling. However, reports later clarified that Wintermute, a major market maker, initiated these transactions while reallocating funds, not Binance itself.
The market’s downturn has only added fuel to these suspicions. During periods of fear, uncertainty, and doubt (FUD), traders often look for scapegoats, and Binance—being the world’s largest exchange—is an easy target.
In reality, many of these transactions are likely large withdrawals by whales rather than Binance itself liquidating tokens.
Also Read: Fact Check: Did Binance Rating on Google Really Drop to 1.5?
