One of the most talked about topics on X (formerly Twitter) today was the serious allegations against Binance founder Changpeng Zhao (CZ).
In a long message, an anonymous analyst using the pseudonym “Strong” accused CZ and Binance of years of manipulation, market manipulation, and self-serving behavior in the crypto market.
Strong claimed that Binance’s IEOs (Initial Exchange Offerings) were supported in a “pump-and-dump” fashion from 2017 to 2019, and the market was intentionally forced into a steep decline from 2021 to 2022. The analyst said the price pressure arose because Binance required projects to supply tokens in exchange for listing and then sold these assets on the market. Furthermore, it was alleged that the exchange took an aggressive stance aimed at eliminating healthy competition in the sector.
The statement claimed that CZ had previously conducted such activities in relative secrecy from the public, but that over the past six months his actions had become more “open and brazen.” Mr. Strong cited a change in the relationship with the US government as one reason. It was noted that Mr. CZ had previously been convicted of money laundering in the United States and served a short prison sentence, suggesting that the change in the political climate had reduced the pressure on surveillance.
The analyst also argued that the “crypto-friendly” rhetoric expressed during President Donald Trump’s election campaign has not translated into practice, and that some large companies have been able to move more freely in the market during this period. It is alleged that the rapid price movements, especially during periods of low liquidity, were planned.
Performance of TRUMP token promoted by Donald Trump after Binance listing.
One of the most shocking aspects of Strong’s claims concerns the decentralized cryptocurrency exchange Aster DEX and its tokens. $ASTERAnalysts claim that CZ promoted this project in a big way, and the price peaked with the spot listing on Binance and then fell sharply. The allegations also include allegations that Binance and associated wallets were involved in the sale of large quantities of goods. $ASTER During this period.
CZ’s previous tweet $ASTER It was listed on Binance with bullish comments about. $ASTER The statement “Astrobar” and subsequent price movements.
Mr. Strong argued that $ASTER has lost more than 80% of its peak value and experienced a sharp decline independent of general market conditions, stating that the cryptocurrency market has had a weak outlook since October 10th. On October 10, Strong described it as “the largest liquidation event in crypto history.” The analyst argued that large short positions had been opened on some platforms hours before the selloff, suggesting it was a planned move. The post also called CZ’s claim that he received a pardon from President Trump around the same time “notable in terms of timing.”
CZ also tweeted a few days before the October 10 crash, saying, “Now I wish I had bought earlier in the season.”
CZ’s tweet before the crash on October 10th.
Strong claimed CZ was promoted. $ASTER A buyback was carried out to alleviate the situation, but at the same time sales continued through secondary wallets. It is also said that the Aster DEX team is largely made up of former Binance employees, and the person introduced as the project’s CEO rarely appears in public, giving the impression of a “showcase” structure. Furthermore, a significant portion of $ASTERThe supply of was concentrated in Binance-linked structures and released to the market throughout the airdrop season.
According to analysts, CZ’s statement that he “purchased $2 million worth of goods” $ASTER “With my own money,” the market was temporarily relieved, but prices quickly rebounded and returned to a sharp downward trend. $ASTER has lost about 80% of its value since its peak, performing much worse than the overall market, and the cryptocurrency market is said to have entered the “circulation stage” since October 10th.
The price movement of $ASTER tokens after CZ announced that it had purchased them.
Strong said CZ carried out these activities in secret from the public for many years, projecting a “harmless and friendly” image to the outside world. The main reason, he claims, was fear about the U.S. government. Analysts claim that the US saw FTX as a tool to control cryptocurrencies during the 2021 bull market, but the Sam Bankman Freed scandal has disrupted this plan. In response, the U.S. government turned its attention to CZ, who was convicted of money laundering and served a short prison term.
This suggests that the massive market crash experienced in 2021-2022 was no accident. Strong claims that the market was deliberately suppressed during this period and that the process was part of a power struggle aimed at sidelining FTX founder Sam Bankman Fried (SBF).
As evidence for his claim, Strong cited the false drop in Binance’s USDe token price during the October crash that triggered a wave of liquidations. He also included a number of bullish tweets about Aster from Binance founder CZ.
*This is not investment advice.
