XTZ plunges after Binance ‘receipt’ proves Tezos is the bad apple. What’s next?
Tezos [XTZ] may have put itself and its native cryptocurrency, XTZ, according to recent events, under problematic circumstances. On Aug. 25, a group of contributors on its network (Baking Bad) accused the cryptocurrency exchange Binance Freezing more than $1 million of its assets without following due process.
In addition, the author Suggest The Tezos community holding assets on the exchange withdraws its allegiance to the organization led by Changpeng Zhao (CZ). While cryptocurrency exchanges responded appropriately to the allegations, the price of XTZ was looking for crude oil on the charts.
At press time, the proof-of-stake (PoS)-backed token is trading at $1.48.according to Coin market value Data shows that the price fell 10.10% over the past 24 hours. While most cryptocurrencies in the market are in the red, XTZ has seen its biggest drop in the past seven days.
Who is the culprit?
In response to the Baking Bad claim, Binance pointed out that its decision was not random and that the exchange was not at fault. In further defense, the exchange said it was acting under an enforcement order.
Binance also noted that the Baking Bad team failed to cooperate before accusing it of making rash decisions.
The account in question was restricted due to a law enforcement request that @TezosBakingBad Very clear as he has been told this many times and provided the LE contact form via our support chat system on July 6th, July 12th and July 22nd.
— Binance (@binance) August 25, 2022
So, where does this prop-to-post conversation leave XTZ behind? According to information on the XTZ/USDT four-hour chart, the event appears to have put XTZ in a dire state.
While assessing its Chaikin Money Flow (CMF), it was revealed that XTZ investors may not be interested in increasing their holdings. At press time, the CMF value is negative -0.09.
Interestingly, as of August 25th, when Baking Bad was yelling, these metrics were showing positive signs (0.02). With its current location, everything around it seems to have influenced the previous XTZ stance. It is similar to on-balance volume (OBV), which also fell to 61.2 million.
Recovery Metrics and Comparative Responses
Despite these events, Santiment data show XTZ investors have the same confidence as ever. Transaction volume increased by 24.68% to $54.06 million.
Likewise, active addresses on the Tezos chain did not drop significantly. At the time of writing, that number has increased to 927,000.
However, Binance and Baking Bad have been responding based on the seizure.Although XTZ contributors say they respond At Binance’s request, the exchange Admission They can’t stop the freezing of assets.
There is no clear indication of where this is going. Additionally, XTZ showed no signs of positive sentiment.