Hassan Maishera
TL;DR
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Bitcoin is down by more than 2% on Monday following WSJ’s Binance report.
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BTC is currently struggling to stay above the $29k level.
Bitcoin Sink Below $29k
Bitcoin, the world’s leading cryptocurrency by market cap, lost more than 2% of its value on Monday. This latest development comes following a report by the Wall Street Journal earlier today.
According to the WSJ report, Binance CEO Changpeng Zhao (CZ) suggested in a private conversation that the cryptocurrency exchange’s affiliates had carried out wash trading a few years ago.
Wash trading is a process where an entity or individual artificially inflates transaction volumes by trading with themselves or an affiliated entity.
The report immediately saw BTC lose more than 2% of its value and drop below the $29k level for the first time in weeks. At press time, the price of Bitcoin stands at $29,077 per coin.
Binance Denies Wash Trading Claims
A spokeswoman for Binance told the Wall Street Journal that neither the company nor Zhao has engaged in or tolerated wash trading. The spokesperson added that;
“Binance does not engage in or tolerate wash trading, which is a violation of our terms of use, nor has it ever done so. Binance has a dedicated Market Surveillance team that is responsible for reviewing surveillance related to potentially abusive and/or manipulative behavior including wash trades and trade price manipulation. The Market Surveillance team utilizes surveillance models and a team of experienced surveillance professionals to detect and prevent market abuse."
The WSJ report also added that Binance's representative dismissed the SEC's charge as unfounded.
Bitcoin’s price was affected because of Binance’s position in the market. Binance is the world’s largest cryptocurrency by daily trading volume.
