“”Users are free to choose whether or not to join the savings products.
Binance is reportedly engaging with low-liquidity token projects trading on its platform, in a bid to protect users from “potential market manipulation”, a spokesperson for the Exchange confirmed to The Block. Details regarding their relationship with market makers are being requested, as well as requesting cryptos teams to consider contributing funds to Binance’s savings product.
Nevertheless, projects can opt-out from the savings are free to do so. The Block further acknowledges that the ‘small number of crypto outfits’ targeted with this outreach is all part of an ongoing risk management initiative. In addition, Binance is said to aim to combat market manipulation by asking the projects to improve their liquidity protection, by pointing them to market makers.
These allegations refute any speculations of Binance selling Bitcoin in a attempt to preserve the value of its native token, BNB. On-chain data, however, points to a contradicting outcome. To increasingly bring security to investors, the Exchange has drastically put its foot close to the publication of the accounts of projects disclosure.
