Amid a 23% weekly correction in Solana price, Binance has clarified it hasn’t sold tokens despite social media speculation triggered by market makers withdrawing substantial SOL from the exchange.
By Bhushan Akolkar
Edited by Marco T. Lanz
Updated
3 mins read
Crypto exchange Binance has clarified on social media chatter of dumping Solana tokens during this crypto market sell-off in recent times. Amid the macro uncertainties and the Trump tariff wars, the broader crypto market has been facing major turbulence, with Solana price crashing heavily and dropping under $130 earlier today.
With 23% correction in SOL SOL $124.9 24h volatility: 1.2% Market cap: $64.00 B Vol. 24h: $1.85 B on the weekly chart, social media discussions gained momentum that some of the top crypto firms, including Binance, have been involved in selling their tokens via OTC (over-the-counter) trades.
Additionally, speculations gathered steam after reports of market makers withdrawing substantial amounts of Solana (SOL) from Binance’s hot wallets emerged. This led some crypto investors to mistakenly believe that the exchange was offloading its SOL holdings.
However, crypto exchange Binance has refuted these claims, adding that there’s a strong misunderstanding regarding its role as an exchange. A Binance spokesperson told Cointelegraph:
“Binance hasn’t ‘dumped’ or ‘sold’ large amounts of tokens as some tweets have wrongly claimed. They are misunderstanding what Binance does as an exchange, which is we simply help users match trades.”
As per the data from blockchain analytics firm Arkham Intelligence, crypto market maker Wintermute withdrew over $38.2 million worth of Solana (SOL) from Binance in 24 hours. The withdrawals come just days ahead of Solana’s $2 billion token unlock on March 1, which will release more than 11.2 million SOL tokens into circulation.
However, the Binance spokesperson clarified that market makers like Wintermute operate independently with their own strategies, unrelated to what the exchange is doing. The spokesperson added:
“We have no visibility into our users’ decisions, including market makers who move their assets according to their own strategies. So while blockchain transparency is one of the best things about crypto, it’s important not to jump to conclusions about screenshots of transactions.”
The broader crypto market correction has smashed altcoins hard, with Solana tanking over 10%. Following today’s dip under $130 levels, the SOL price has recovered above $140 levels, bouncing back from the crucial support levels.
Crypto analyst Ali Martinez has highlighted a pivotal moment for Solana (SOL) investors, urging bulls to hold the $125 support level to prevent further price declines. The level is seen as crucial for maintaining bullish momentum amid broader market volatility.
Source: Ali charts
In another development, a newly created wallet has withdrawn 96,128 Solana (SOL), valued at $12.37 million, from Binance at a price of $128.6 and staked the entire amount with Jito, according to blockchain analytics firm SpotonChain.
The wallet is reportedly linked to a whale who recently closed its first SOL trade at a higher price of $140.8, approximately three days ago. The move allegedly netted the whale a profit of $4.58 million (+51%) after holding the staked funds for a year.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
