Binance recently addressed allegations of market manipulation by ‘dumping’ millions of Solana (SOL) and Ethereum (ETH) tokens through Wintermute.
Traders' Allegations
Recent allegations against Binance involved purported 'dumping' of SOL and ETH tokens through Wintermute. Traders claimed that data showed Binance moving significant amounts of tokens to the market maker account Wintermute on February 24.
Binance's Response
Binance firmly rejected allegations of 'dumping' tokens, stating that many traders misinterpreted transactions related to Wintermute. The exchange clarified that its role is in helping users match trades, not selling tokens.
Role of Market Makers
Market makers like Wintermute play a critical role in maintaining liquidity in cryptocurrency markets. They fulfill large orders and contribute to market stability. Binance, like many other exchanges, collaborates with them to enhance liquidity.
While the allegations have caused concern among traders, Binance maintains that its actions are aimed at ensuring a fair trading environment.
