Is Binance Manipulating the Price of ETH and the Entire Altcoin Market?

Ted, a controversial cryptocurrency analyst on X today. In a rapidly spreading post, Ted claimed that Binance might be manipulating the price of Ethereum – and more broadly, the entire altcoin market. “I hate to say this, but Binance is manipulating $ETH and the entire altcoin market,” Ted wrote. “They are dumping millions of ETH by transferring it to many market-making accounts to sell off… How can they transfer so much Ethereum when they don’t have excess $ETH, only customer funds?” This tweet refers to the amount of Ethereum held by Binance, as shown in the latest Proof-of-Reserves snapshot of this platform – and the data is currently fueling speculation. This tweet refers to the amount of Ethereum that Binance holds, as shown in the latest Proof-of-Reserves snapshot of this platform – and the data is currently fueling speculation. ETH Rate on Binance: 100.67% According to Binance’s reserve dashboard, Ethereum currently has a ratio of 100.67% - meaning the exchange holds a little more ETH than the amount they owe to customers.

Customer net balance: 4,555,013 ETHNet balance of Binance: 4,585,489 ETHEther held by the exchange: ~4.25 millionThird-party custody: ~338K Technically, this confirms that Binance has the ability to settle for ETH – but only with a very small margin. There is no large surplus at all. That’s when Ted’s accusation arises: if Binance is transferring millions of ETH to market makers, then where is that additional supply coming from? Market Maker Theory According to Ted, Binance is dumping ETH through multiple internal market-making accounts - accused of using customer funds to do so. They claim that these ETH transactions do not come from reserves or excess balances, but from Ethereum stored on behalf of users. If so, this could be a serious breach of trust. ETH is currently trading strongly and is trying to regain the $4,000 mark, thanks to demand from institutions and optimism surrounding the ETF. A mass sell-off at such a critical level could disrupt the price formation process - not just for ETH but for the entire altcoin market. It’s important to clarify: this is Ted’s opinion - not a fact confirmed by Binance, and not the opinion of CaptainAltcoin. Binance is one of the largest and most closely monitored exchanges in the world. The exchange’s proof of reserves page is publicly available and regularly updated. If there are any serious accounting discrepancies, regulatory or audit agencies will likely detect them. However, the ETH ratio of only 100.67% also somewhat reinforces Ted’s concerns. If the Ethereum reserves are nearly 1:1 with the liabilities, then even a small fluctuation from the Binance wallet could raise doubts - especially if the market fluctuates afterward.