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Anyone notice how Binance is manipulating the BNB price by overcharging short margin interest?

Just a small thing I noticed. As you probably know, if you want to short sell a coin on binance, you have to borrow it. Binance charges interest for this loan, of course. But if you try to look through their interest rates, one coin clearly stands out: https://www.binance.com/en/margin-fee

That coin is BNB. Its yearly interest is currently 109.5%. For comparison, if you look at almost any other coin, even much smaller, riskier coins, the yearly interest is an order of magnitude lower, something like 5 to 20%.

This is despite the fact that fundamentally the interest should probably be among the lowest, as Binance has much easier access to liquid BNB, as it’s their own coin.

I can’t see any other reason for this than it being designed to suppress short seller interest, and thus increasing the price. It’s not that big a deal, but I thought it seemed pretty shady, and IMO it should serve as a warning sign for BNB investors as it means its market forces are at least partially manipulated.



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26 Comments

  1. Thanks for this. Nice not seeing the same shallow posts on this sub.

    It’s sad that BNB investors are cheering manipulation because of their greed.

    A centralized and manipulated coin will never pass any kind of government regulations. No institutional investors and no serious projects requiring security will be built long term with it. I believe it’s a fad that will eventually crumble down.

    The price can definitely keep rising for a while yet but I personally wouldn’t touch it.

  2. This is a nice find op.

    But the same can’t be said about futures where most of the bnb volume is traded. At the end of the day they are promoting their own product, and people shouldn’t be surprised by that

  3. Not sure if it’s manipulation. It could be market dynamics. Maybe there are so many traders wanting to short BNB it’s driving the rates up. Same thing is happening to GME. IF you want to short GME you pay a steep premium. I do think BNB is in super FOMO territory. The Coinbase IPO is driving BNB to super frothy levels. If you take the fair market value a couple weeks ago ($40 billion market cap) and and then price in the upcoming token burn then the new coin value would range between $320-$350. Anything over $350 is pure speculation. I think many traders think the coin is too high and are piling into short trades driving the premiums up.

  4. Kucoin doesn’t even allow short sales of KCS token…

    Do you really think any intelligent business would promote the short sale of their own namesake asset? Seems pretty common sense to me.

  5. Yes, binance promotes the use of bnb very heavily. Maybe evil but also very smart. They know exactly what they are doing. And it’s very clear it’s working. In a short time bnb has become an absolute beast.

  6. Buying back their own coin with their profit just to burn them is price manipulation to begin with.. But what can I say? You come to their playground, you play with their rules. You don’t want such rules? You go with decentralization.

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