Current Challenges Faced by Binance
Amidst the ongoing FTX trial for fraud and money laundering, Binance, one of the most popular crypto exchanges, is grappling with its own existential crisis. The US’s SEC has charged Binance with fraud and deceiving regulators. Additionally, a payment processor, Paysafe, abruptly halted Euro transactions for Binance, leading to its exit from the European markets, including the Netherlands.
Impact on BNB Token
The native token, BNB, has been severely affected, experiencing a drastic decline in value, losing more than 65% since its peak at $675 in May 2021. BNB is integral to Binance’s business model, with a market share exceeding $32.5 billion. Any crackdown on BNB’s price could significantly impact the exchange and vice versa.
Ownership Concerns
In 2022, FTX exchange faced scrutiny when it was revealed that they held a substantial amount of FTX tokens. A similar situation might be unfolding for Binance, as reports indicate it controls 76% of the outstanding BNB as of August 2023.
Similarities with FTT Token
Notably, BNB exhibits striking similarities with the FTT token in terms of price trends. Speculations arise that BNB’s price might decline in the coming weeks, mirroring FTT’s trajectory.
Future Predictions
Charts indicate that the BNB price is on the brink of a major bearish move. If BNB replicates FTT’s downturn, it could end up trading in single digits or even lower. The outcome hinges on revelations regarding the Binance exchange, which hold immense significance for the entire cryptocurrency space in the imminent future.
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