BNB holder caution warranted as the SEC-Binance standoff intensifies

Please fol­low and like us:
Pin Share

  • Binance US found itself in a pick­le as the SEC push­es the ped­al on reg­u­la­to­ry scrutiny.
  • BNB con­fi­dence dropped as mul­ti­ple Binance US exec­u­tives resigned.

BNB hold­ers are exer­cis­ing cau­tion with the cryp­tocur­ren­cy amid the ongo­ing stand­off between the SEC and Binance US. On top of that, the cryp­to exchange recent­ly lost mul­ti­ple executives.

Is your port­fo­lio green? Check out the BNB Prof­it Calculator

The Binance US CEO, head of legal and its Chief Risk Offi­cers were among the exec­u­tives that recent­ly resigned. These res­ig­na­tions were report­ed at a time when Binance US has been fac­ing some tumul­tuous times. Pres­sure and scruti­ny from the SEC have fur­ther exas­per­at­ed the situation.

BNB traders are now con­cerned that the afore­men­tioned woes might sup­press the cryptocurrency’s per­for­mance. Its on-chain data already con­firms that BNB hold­er con­fi­dence has been declin­ing since its 12 Sep­tem­ber peak. The weight­ed sen­ti­ment met­ric was at its low­est week­ly point at the time of writing.

BNB volume and weighed sentiment

Source: San­ti­ment

Despite the dip­ping sen­ti­ment, BNB still man­aged to achieve its high­est week­ly vol­ume in the last 24 hours. This may explain why the price con­tin­ued to ral­ly, although the lack of enthu­si­asm sug­gests that BNB bulls are pulling their punch­es. It seems to be a reflec­tion of the FUD and con­cern around Binance’s lat­est woes.

BNB price action

Source: Trad­ingView

Is BNB’’s price action headed for a rockier path?

BNB’s price revealed the low­er mar­ket con­fi­dence on account of Binance’s cur­rent issues. But the real ques­tion is whether BNB hold­ers and traders are at risk of more bear­ish activ­i­ty. The short answer is that it is indeed the neg­a­tive pub­lic­i­ty that could crush the pre­vail­ing demand.

BNB’s cur­rent sce­nario is rem­i­nis­cent of how XRP strug­gled with low demand before the court’s rul­ing. Per­haps the biggest chal­lenge right now is that Binance’s strug­gles might lead to its exit from the US mar­ket if it fails to meet the SEC’s requirements.

How many are 1,10,100 BNBs worth today

The lengthy bat­tle between Binance US and the SEC has already had a neg­a­tive impact on its oper­a­tions. For exam­ple, the exchange exceed­ed $10 bil­lion in trad­ing vol­ume and has since dropped to below $20 mil­lion. This reflects the shift that has occurred now that most US based users have pulled back from using Binance.

If Binance US gets boot­ed, there is still the glob­al ver­sion of the exchange. How­ev­er, the impact would like­ly be severe. A clas­sic exam­ple is the thou­sands of jobs that will report­ed­ly be lost if that hap­pens. While that is a real pos­si­bil­i­ty, there is still the oth­er side of the coin where Binance might get over its cur­rent situation.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.