Good morning Binancians.
I am not a finance expert, however, I research everything I don't know. There are users of this platform who claim that Binance manipulates the prices of a token or coin. They have explained it to me this way:
A cryptocurrency exchange fulfills key functions: facilitating the buying and selling of assets by connecting buyers and sellers, providing liquidity through market and limit orders, ensuring security in transactions and custody of funds, and offering tools such as charts, wallets, or margin trading. Additionally, they usually list new projects and comply with local regulations.
Do they determine the market price?
Not directly. The price is formed by global supply and demand, although each exchange reflects its own market according to the liquidity and volume it handles. For example, an exchange with low volume may have more volatile prices or prices that deviate from other platforms. However, arbitrageurs usually balance these differences. Exceptionally, large exchanges (like Binance) can influence trends due to their dominant participation, but they do not "set" the price. External factors (news, regulations) are the main drivers. In summary, exchanges are intermediaries, not absolute controllers of the market.