Recent events suggest that Tezos and its native coin, XTZ, could get into hot water. Recently, a group of network contributors under the name Baking Bad claimed that the cryptocurrency exchange Binance had improperly frozen more than £0.85 million of its assets.
The writers further urged the Tezos community to stop supporting the firm by withdrawing their funds from the exchange. As the exchange refuted the allegations, the price of XTZ began to fall.
The Proof-of-Stake (PoS) backed cryptocurrency was trading at £1.26 at the time of writing. Data from CoinMarketCap showed that the price had dropped by 10.10% over the past 24 hours. This
decline was the largest in the last seven days.
Binance stated in response to the Baking Bad accusation that the decision was not arbitrary and that the exchange made no mistake. Binance further claimed that it acted in accordance with court directives.
Before leveling accusations of a poor judgement, the exchange also pointed out that the team did not cooperate.
According to data from the XTZ/USDT four-hour chart, the incident appears to have severely damaged XTZ.
Chaikin Money Flow (CMF) analysis found that XTZ investors could not be motivated to increase their holdings. At the time of writing, the CMF value was -0.09.
On the other hand, as of August 25—the day Baking Bad screamed out—the indicators were positive at 0.02. It appears from XTZ’s current position that everything surrounding the event has had an impact on the altcoin. The On-Balance-Volume (OBV), which also decreased to 61.20 million, was no exception to the effect.
Despite the events, Santiment data revealed that XTZ investors’ trust remained constant. To reach £46 million, the volume climbed 24.68%.
Furthermore, there was no major drop in the number of active addresses on the Tezos chain. It had increased to 927,000 as of the time of writing.
Binance and Baking Bad, however, have both been posting updates regarding the confiscation. The exchange insisted that there was little they could do to stop the assets from being frozen, despite the XTZ team’s claims that they complied with Binance’s request.
The future course of the situation was not immediately clear. Additionally, XTZ showed no positive signs.