Benzinga - Veteran trader Peter Brandt took to X, formerly known as Twitter, issuing a strong warning about Binance and its native token, Binance Coin (CRYPTO: BNB), amidst growing concerns in the crypto community.
What Happened: Brandt, in his tweet, stated, “I have stated for years that CZ and @binance is a global scam and $BNB just a cheap fiat. Watch it all unravel.”
This statement was further supported by investor Mike Alfred’s response, suggesting that Binance’s CEO, Changpeng Zhao, was offloading Bitcoin (CRYPTO: BTC) to maintain the value of BNB, which seemed to be failing.
I have stated for years that CZ and @binance is a global scam and $BNB just a cheap fiat. Watch it all unravel https://t.co/B1SRFFWgY0— Peter Brandt (@PeterLBrandt) August 22, 2023
See Also: Mysterious Whale Acquires $3B Worth Bitcoin In 3 Months: Guess How Much The Ultimate HODLr Spent?
Why It Matters: Brandt’s tweet comes amidst a backdrop of increasing scrutiny on Binance. The world’s largest crypto exchange has faced a series of challenges, from regulatory pressures to partnership losses.
Coinbase reported about the ongoing conversations surrounding Binance selling off Bitcoin to support the declining price of BNB. This has further fueled concerns about the exchange’s stability and the potential impact on the broader crypto market.
As per a Forbes report, a former U.S. Securities and Exchange Commission (SEC) official, John Reed Stark, recently voiced concerns over Binance’s operations, especially after the exchange reportedly suspended euro withdrawals and deposits via the Single Euro Payments Area (SEPA) system.
With Binance’s BNB losing over 30% of its value since the SEC’s lawsuit against the exchange and its CEO, the crypto community is on edge. The situation is reminiscent of the FTX collapse, raising concerns about the potential repercussions for Binance and its users.
Read Next: Crypto Trader Who Predicted Bitcoin Bottom In 2018 Says Market Could Be Nearing Last Chance To Buy
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