Journalist
Posted: September 17, 2023
- Binance US finds itself in trouble as the SEC ramps up regulatory scrutiny.
- Confidence in BNB declined as several US executives of Binance resigned.
BNB holders are being cautious about the cryptocurrency amid the ongoing standoff between the SEC and Binance US. Furthermore, the crypto exchange has recently lost several executives.
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Binance US’s CEO, head of legal and its chief risk officer were among the executives who recently resigned. These resignations come as Binance US is facing some tumultuous times. The pressure and investigation from the SEC has made the situation even worse.
In this week’s market update 📨
$1 Trillion Asset Manager Spot Enters Bitcoin ETF Race, Binance .US Officials Quit Amid Regulatory Probe, FTX Gets Court Approval To Delist Crypto Assets
👜 Topic of the week: Wallet
– Gemini (@Gemini) 15 September 2023
BNB traders are now worried that the aforementioned crisis could depress the cryptocurrency’s performance. Its on-chain data already confirms that BNB holder confidence has been declining since the September 12 peak. The weighted sentiment metric was at its lowest weekly point at the time of writing.
Source: Sentiment
Despite the falling sentiment, BNB still managed to achieve its highest weekly volume in the last 24 hours. This may explain why the price continued to rise, although the lack of enthusiasm suggests that BNB bulls are holding out. This seems to be a reflection of FUD and concern about Binance’s latest problems.
Source: Trading View
Is BNB price action headed for a tough road?
BNB price revealed low market confidence due to Binance’s ongoing 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 actually negative publicity that can crush prevailing demand.
BNB’s current scenario is reminiscent of how XRP was struggling with low demand before the court decision. Perhaps the biggest challenge right now is that Binance’s struggles could lead to its exit from the US market if it fails to meet SEC requirements.
How much is 1,10,100 BNB worth today?
The protracted battle between Binance US and the SEC has already had a negative impact on its operations. For example, the exchange’s trading volume peaked at over $10 billion and has since fallen to below $20 million. This reflects the change that has occurred now as most US based users have moved away from using Binance.
If Binance US gets booted up, the global version of the exchange still exists. However, the effects are likely to be severe. The classic example of this is the thousands of jobs that would reportedly be lost if this happened. Although this is a real possibility, there is another side to the coin where Binance could recover from its current position.
Source: ambcrypto.com
