- Over the past two days, BNB has seen a modest increase of around 14% to reach $251, but it lags behind the top 100 coins in terms of performance.
- Between June 5 and 12, the token’s value plummeted by approximately 25%, reaching its lowest level since 2022.
Over the past two days, BNB has seen a modest increase of around 14% to reach $251, but it lags behind the top 100 coins in terms of performance, despite this, fears are growing among investors in digital assets as the price of Binance’s native token, where it has experienced a significant drop.
Between June 5 and 12, the token’s value plummeted by approximately 25%, reaching its lowest level since 2022. This decline is attributed to Binance Holdings, the company that operates the exchange, being sued by the U.S. Securities and Exchange Commission for alleged rule violations. The SEC also considers BNB, along with other digital assets, as unregistered securities.
Despite the setback, BNB remains a significant player in the cryptocurrency market, with a market capitalization of $39 billion, making it the fourth-largest cryptocurrency according to CoinGecko. Users of the Binance platform benefit from discounted transaction fees, and the success of both Binance and the BNB coin are closely linked.
While Binance’s response to the SEC lawsuit helped stabilize BNB to some extent, it also raises the possibility of potential charges from the U.S. Department of Justice, introducing further risks to the situation.
Binance and the Battle with Regulations: Challenges and Responses
The Securities and Exchange Commission (SEC) has leveled allegations against Binance and its CEO, Zhao Changpeng, accusing them of mishandling client funds, providing misleading information to investors and regulators, and violating securities regulations. Binance responded to this action, expressing disappointment and stating its strong commitment to defending its platform.
Following the collapse of the FTT token, investors are now shifting their focus towards native tokens available on cryptocurrency exchanges. The failure of FTT’s token has raised concerns within the industry regarding the resilience of exchanges. This has prompted investors to seek alternative options.
Furthermore, Binance CEO Changpeng Zhao, also known as CZ, has refuted allegations of Binance engaging in secret sales of Bitcoin to artificially stabilize the price of the BNB token (BNB). Various market experts, including analyst Dylan LeClair and Swan Bitcoin CEO Corey Cristen, have circulated rumors suggesting that Binance aims to inflate the value of BNB through market manipulation. However, these allegations have been denied by Binance’s CEO.
- In a tweet on June 13, CZ said Binance did not sell itself or BNB, saying that the crypto exchange still has a “bag of FTX tokens” (the native token of the now-defunct crypto exchange FTX). ‘, he added.
- “It’s amazing that from a price list with millions of distributors, you can see exactly who sold it. FUD,” he added
CZ directly responded to a post by technical analysis platform Skew on June 14. Skew accused Binance of engaging in market manipulation through a series of trades involving BTC, BNB, and Tether.
Since the launch of BNB, the cryptocurrency exchange has enjoyed the benefits of increasing investor interest in the coin. BNB witnessed a significant price surge in early 2021, capturing the attention of corporate investors.
To enhance its deflationary tokenomics, BNB has implemented measures such as BEP-95. This has further reduced the supply of BNB tokens in circulation.
As per the proposal, gas prices on Binance Smart Chain will be even more affordable, as the network will bear a portion of the charges to promote further decentralization. Users are attracted to this feature due to the lower fees and the availability of lucrative meme coins within the ecosystem.
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