Binance will ultimately respond to online traders who denounce the exchange of manipulating the market by “dumping” millions of SOL and ETH tokens through WinterMute.
In a recent post shared by Binance’s customer support account, Binance responded to traders asking about on-chain data indicating that Binance’s hot wallets “send” millions of Solana (Sol) and Ethereum (Eth) Tokens from their holdings of Feeb. 24.
In response to the comment, Binance denied accusations that it had “dumped” or “selled” millions of tokens. Many traders have claimed that they simply “misunderstood” the on-chain transactions linked to WinterMute.
“As an exchange, we only help users match the transaction, and there is no visibility into user decisions, such as market makers who may move assets according to their strategy,” explained Binance in a recent post.
Hello,
Binance has not “dumped” or “selled” large quantities of tokens due to some tweets misunderstanding. As an exchange, we simply help users to match the transaction and there is no visibility into user decisions.
– Binance Customer Support (@binancehelpdesk) February 26, 2025
read more: Binance Offroad is millions of ETH and SOL, what does that mean?
The exchange warned traders that they “do not jump to conclusions about the screenshot of the trade,” and warned them that they should learn to recognize market fears, uncertainties, doubts and tactics that inspire FUD.
Additionally, Binance has encouraged users to learn more about how market manufacturers like WinterMute work to better understand their role in promoting liquidity.
On February 24th, data on Arkham Intelligence showed that it would move at least 1,0003,570 SOL ($1,632 million at the time) and approximately 25,000 ETH ($80 million) for market maker Wintermuting. Many traders interpreted this as Binance, which sold or dumped these tokens from crypto retention through wintermute.
Investors and traders thought the event was an indication that Binance was preparing for market volatility that could affect SOL and ETH liquidity and trading volume. Just a day later, the crypto market collapsed as Bitcoin prices fell below $90,000, leading to a liquidation of more than $1 billion.
At the time, traders denounced Binance, Buybit and other major centralized exchanges of “manipulating” the market at a price cap. However, there is no conclusive evidence to support these claims.
In a link shared by Binance in addition to its response, the exchange argued that it employs a market surveillance program on a platform that functions to detect and prevent market operations and ensure a “fair trading environment.”
read more: Crypto’s liquidation is a tally of over $1 billion, why is the crypto crashing?
Why did Binance send tokens to WinterMute?
A market maker is a company or entity specialising in providing liquidity in the crypto market by placing purchase and sales orders, tightening bid spreads and enabling smoother trading activities. Market manufacturers play an important role in the crypto market as they absorb large orders, reduce price drops, and contribute to market stability.
Exchanges like Binance typically partner with market makers by providing tokens as bonuses or incentives for market makers to continuously increase inventory. In doing so, market makers like WinterMute can increase liquidity on their platforms.
One analyst at X explained that Binance did not sell tokens to WinterMute, rather that WinterMute had withdrawn tokens from Binance’s holdings to maintain market liquidity.
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