I asked ChatGPT if BNB can bear the downtick, its reply was affirmative

Binance’s Expansion in Japan

On 25th July, Binance [BNB] CEO Changpeng Zhao “CZ” announced that the exchange will provide full services in Japan on its new platform, the Sakura Exchange Bitcoin, beginning August.

Legal Victory for Ripple and BNB’s Price Rally

Earlier, BNB’s price rose barely 7% after Ripple [XRP] secured a partial victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on 13th July. But it hasn’t led to a significant price rally.

The U.S. District Court of the Southern District of New York ruled in its judgment that the sale of Ripple’s XRP tokens on crypto exchanges and though programmatic sales did not constitute investment contracts; hence, it is not a security in this case. But the court also ruled that the institutional sale of the XRP tokens violated federal securities laws.

The crypto industry has lapped up the judgment instantly, generating a price rally across tokens.

Regulatory Scrutiny on Binance

Binance has been subjected to relentless regulatory scrutiny in 2023, raising grave concerns about the survival of one of the largest crypto companies in the world. Several Binance executives reportedly exited the firm as the regulatory heat intensified.

Binance was sued by the U.S. Securities and Exchange Commission (SEC) in early June for allegedly breaking federal securities laws.

TradingView data shows a surge in aggregated sell orders of about 125,000 BNB worth $37 million just before the U.S. SEC’s crackdown on the exchange. Speculations are rife around a possible case of insider trading.

The world’s leading crypto exchange is also under regulatory scrutiny across several countries in Europe.

• Germany’s financial regulator has rejected Binance’s request for a crypto custody license.
• The exchange has withdrawn its request for regulatory approval in Austria.
• It has also given up its registration with regulatory bodies in the United Kingdom and Cyprus.
• The exchange has opted to quit the Netherlands after failing to register there.
• Belgium has also ordered the exchange to suspend its operations in the country.
• The French authorities are also reportedly investigating the exchange on “aggravated money laundering” charges.

However, the recent SEC-Ripple court judgment has led many to believe it will have a positive impact on Binance’s case as well.

ChatGPT’s Insights on Binance and BNB

Ever since it burst onto the scene, ChatGPT has become a rage, revolutionizing the way humans interact with AI. People have flooded the AI-powered chatbot with a plethora of use cases to get assistance with literally anything. Right from finding a bug in a code, asking philosophical questions about life, getting dating advice, and even writing full-fledged media articles (not this one though).

Put simply, it functions like a conventional chatbot that we have encountered in the customer support section of different e-commerce companies. However, the big difference here is that communication is more conversational, or to put it in a different way, more human-like.

Well, this is because it is trained using reinforcement learning from human feedback (RLHF). This helps it understand instructions and generates nuanced responses.

But cryptos? Binance? Are we stretching the limits of ChatGPT? Let’s see.

Will Binance Move out of the U.S. Market?

Binance is not new to compliance-related issues in the U.S. In 2019, it ceased operating in the country and launched a separate exchange, Binance.US, its American arm.

ChatGPT underlined the resilience of the crypto exchange in the face of a regulatory storm in the U.S. It predicted that Binance will explore every possible revenue to consolidate its position. The AI bot predicted that a complete withdrawal from the U.S. market is unlikely.

Hacks on BNB Chain and BNB’s Future

Apart from regulatory concerns, the ecosystem’s blockchain, BNB Chain, has gained notoriety over the rising number of decentralized finance (DeFi) hacks of late. As per a report by ImmuneFi, a Web3 bug bounty platform, BNB Chain was the most targeted chain in Q1 2023 with 33 incidents of hacks and exploits.

ChatGPT said hacks were ‘definitely a cause for concern’ and advised the developers to prioritize the issue as it may have a damaging effect not just on the adoption of the BNB Chain, but on the value of the BNB coin as well.

Well, ChatGPT asks readers to take its word of caution seriously. To address the security loopholes, BNB Chain soon announced a hard fork which is scheduled to go live on 12 April.

Another thing that caught our attention was the use of BSC rather than BNB in the latest response. Now, it’s a known fact that Binance Chain and Binance Smart Chain are now collectively referred to as one entity – BNB Chain. The update took place in February 2022. However, ChatGPT continued to use BSC Chain.

BNB’s Price Prediction and Expert Opinion

At press time, BNB was the fifth-largest cryptocurrency in the sector, with a market cap of more than $37 billion, as per CoinMarketCap data. As a result, significant fluctuations in its value could create ripples in the broader crypto market.

Although setting unrealistic expectations amidst this FUD is not the most sensible thing to do, we tried to put ChatGPT under a bit of pressure. We asked whether it sees BNB touching $350 in 2023, given the current state of uncertainty. Though the AI bot didn’t underestimate the effect of regulatory scrutiny, it highlighted that since crypto is a realm of surprise, BNB might hit $350 in 2023.

Needless to say, it isn’t practical to only depend on what an AI tool says in price predictions and markets. There is nothing like getting the insights of real-world experts. Therefore, we got in touch with Marius Grigoras, Chief Executive Officer at BHero and a crypto-expert, to help us out with the same question that we asked ChatGPT. He stated, “While the regulatory landscape is challenging for Binance, and it may impact BNB’s price in the short term, the long-term potential of the token remains strong. Binance has shown resilience in the past, and they are likely to find ways to adapt and continue their operations.”

BNB’s Current Price Analysis

BNB continues to experience a bearish trend since the U.S. SEC filed a lawsuit in early June. At press time, BNB was trading at $241.9. The price of BNB has dipped more than 20% since the SEC’s enforcement action. The coin also faced a significant drop to $220 during the December 2022 FUD around Binance’s proof of reserves.

Looking at the technical indicators, both BNB’s Relative Strength Index (RSI) and Money Flow Index (MFI) are resting much above the neutral 50-mark, indicating some strength in the token. The On Balance Volume (OBV) shows a slight uptick for the last day.

Conclusion

Despite ChatGPT’s bullish price prediction for Binance Coin, it is essential to consider all factors, including the regulatory landscape and on-chain metrics, while making investment decisions. Cryptocurrencies are highly volatile and subject to rapid changes, so it’s crucial to conduct thorough research and consult with experts before making any financial moves.

As the crypto industry evolves, the fate of Binance and Binance Coin will be shaped by their ability to adapt to regulatory challenges and market demands. Investors and analysts should remain vigilant and informed to navigate the uncertainties of the crypto space effectively.

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered financial or investment advice. Always do your own research and consult with a professional financial advisor before making any investment decisions.