Recently, a claim has emerged about Binance, the world’s largest cryptocurrency exchange by trading volume. Binance CEO has denied allegations that the exchange spent $2 billion to buy Bitcoin from the bottom.
Binance did not buy BTC
CEO Changpeng Zhao, commonly known as CZ, revealed that Binance did not receive any Bitcoin over the weekend. Over the weekend, several news sites claimed that the Binance exchange had bought the Bitcoin dip. This was at a time when the price of BTC fell below $20,000. Apparently, reports cited an instance where Binance transferred approximately 101,266 BTC to a cold wallet. The exchange does not deny the transfer of crypto money. But he rejects any suggestion that he bought the drop.
Crypto cold wallets have been a relatively popular option for crypto storage, especially by whales or top exchanges. As we have also reported as Kriptokoin.com, in general, cold wallets are wallets that are kept offline. They are mainly in the form of hardware devices that can be plugged into a computer. These are different from hot wallets that are kept online with an active internet connection. For example, trades that take place on exchanges are in hot wallets. However, exchanges keep their funds in cold wallets as security away from the internet to avoid any hacking attempts.
Binance CEO explains wallet transfers
According to a recent tweet from Binance CEO CZ, the exchange was transferring BTC holdings to a cold wallet as more users bought crypto on the exchange. Granted, crypto investors are known to accumulate more assets during the dips. This may have happened when BTC fell below $20,000 and $19k over the weekend.
Another wrong article. When cold wallet increases, it means more users are deposited with Binance.
Indeed, the drop has called for bottoms in the crypto community, particularly the crypto community on Twitter. This caused a panic.
Bitcoin price started to recover
While the weekend, especially Saturday, was a painful moment for Bitcoin, the crypto seems to have gathered strength and bounced back into the $20,000 range before retreating to just under $20,000. Bitcoin is currently trading at $19,903.
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