Giant Short Sale for This Altcoin on Binance: Price Melted!

Giant Short Sale for This Altcoin on Binance: Price Melted!
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Giant Short Sale for This Altcoin on Binance: Price Melted!

The collapse of the cryptocurrency exchange FTX and what happened in this process caused significant doubts in the crypto community. In fact, Binance, which was the subject of the allegations that it played a role in the FTX collapse, started to get its share from it. Binance has been receiving criticism from the community lately for its proof of reserve and full asset transparency. In the midst of these developments, huge short positions were created in Binance Coin (BNB). This caused the altcoin price to melt.

Massive BNB sale amid FUD, where is the altcoin price headed?

The color of the cryptocurrency market has turned red again after a short periodic green. However, some projects have a darker hue. One of them is Binance Coin (BNB), the local token of the largest cryptocurrency exchange Binance. In the wake of the recent drop in altcoin price, there is a growing sense of shorting in the community. According to the latest news, the heavily criticized control firm Mazars has cut ties with the crypto exchange. According to experts, the news on this topic likely had a long-term impact on the altcoin price.

It’s in the middle the general mood in the crypto market continues its downward trend following the signals that the Federal Reserve will continue to increase interest rates in 2023. In this context, Binance BNB shorting activity seems to have picked up in recent days.

Giant Short Sale for This Altcoin on Binance: Price Melted!

Binance’s controlling partner, Mazars Group, has previously faced backlash from the crypto community regarding exchange asset transparency. Because of this, the betting control firm has suspended ties with Binance. The trader community believes that Binance is not entirely transparent about the way it holds and stores user assets. As a result, this insecurity led to a sharp drop in the altcoin price. After all, all the criticism about the crypto exchange’s assets started after Binance released its proof-of-reserve check report.

BNB facing ‘short squeeze’?

In this midst, BNB traders are opening big shorts amid the FUD (fear, uncertainty, doubt) around asset transparency. Caesar, a crypto enthusiast, said that shorts in the BNB token reached around $118,000,000. In a post, Caesar stated that traders are piled in with all this FUD surrounding Binance. This comes in the midst of an ever-decreasing price in altcoins lately.

According to CoinMarketCap data, BNB is trading at $236.10, down 3.45% in the last 24 hours. However, the altcoin has lost about 18% in price over the past week. Accordingly, BNB ranked second amid the worst of the top 10 cryptos in terms of weekly performance.

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