tl;dr
Binance, the largest crypto exchange, transferred around $20 million in Bitcoin, Ethereum, and Solana to market maker Wintermute, sparking concerns about market manipulation. Crypto commentators criticized these transactions, alleging market manipulation and unfair practices. The crypto community ex...
Binance, the largest crypto exchange, transferred around $20 million in Bitcoin, Ethereum, and Solana to market maker Wintermute, sparking concerns about market manipulation. Crypto commentators criticized these transactions, alleging market manipulation and unfair practices. The crypto community expressed frustration over the lack of transparency and accountability in such operations. Despite the criticism, Binance and Wintermute have not issued public statements addressing the specific transactions or accusations. The allegations highlight growing concerns about the lack of transparency in market-making activities and the disadvantages faced by retail traders.
Crypto commentator and macro analyst Marty Party highlighted Binance exchange’s transfers to Wintermute on Monday and Tuesday. He claimed the transactions were part of a broader effort to manipulate the market. Against this backdrop, the macro analyst urged the crypto community to resist panic selling, emphasizing the importance of holding assets in self-custody. According to Arkham, Binance sent 70.9 BTC worth $7.2 million and 1,701 ETH worth $5.38 million to Wintermute on Monday in subsequent transactions. On Tuesday, the exchange moved 20,973 SOL worth $4.9 million to the market maker, alongside an additional 1,000 ETH worth $3.17 million.
Another technical analyst, Cryptoblock192.eth, criticized Wintermute’s operations. They suggested that the market maker’s activities undermine the principles of decentralization and fairness. Based on this, the analyst called out exchanges like Binance and Coinbase for enabling practices that exploit retail traders.
The crypto community has expressed frustration over the lack of transparency and accountability in such operations. Gravez, another user on X, emphasized the need for greater awareness. Whale Alert, a blockchain tracking service, flagged another significant transaction involving Binance shortly after the Wintermute transfers. AI builder and crypto enthusiast Flub weighed in, suggesting these movements could be part of larger whale strategies. The repeated allegations against Binance and Wintermute highlight growing concerns about the lack of transparency in market-making activities. Critics argue that the close relationships between exchanges and market makers create opportunities for price manipulation. Retail traders find themselves at a disadvantage because of such practices.