Journalist
Posted:
- Binance US ran into trouble when the SEC put the pedal to the metal on regulatory oversight.
- BNB confidence fell when several American Binance executives resigned.
BNB holders are cautious about the cryptocurrency amid the ongoing standoff between the SEC and Binance US. Additionally, the crypto exchange recently lost several executives.
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Binance’s US CEO, chief legal officer and chief risk officers were among the executives who recently resigned. This resignation was reported at a time when Binance US was going through some tumultuous times. Pressure and scrutiny from the SEC have further exacerbated the situation.
In this week’s market update ????
$1 Trillion Asset Manager Joins Spot Bitcoin ETF Race, Binance .US Executives Exit Amid Regulatory Scrutiny, FTX Gets Court Approval to Start Liquidating Crypto Assets
???? Topic of the week: Walletshttps://t.co/Poig9gD7Ca
— Gemini (@Gemini) September 15, 2023
BNB traders are now concerned that the aforementioned woes could depress the cryptocurrency’s performance. The on-chain data already confirms that BNB holder confidence has declined since the September 12 peak. The weighted sentiment metric was at its lowest weekly point at the time of writing.
Source: Santiment
Despite the bearish sentiment, BNB still managed to reach its highest weekly volume in the past 24 hours. This could explain why the price continued to rise, although the lack of enthusiasm suggests that the BNB bulls are making their move. It seems to be a reflection of the FUD and concerns about Binance’s latest troubles.
Source: TradingView
Will BNB’s price action take a rockier path?
BNB’s price revealed the lower market confidence due to Binance’s current issuance. 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 prevailing demand.
BNB’s current scenario is reminiscent of how XRP struggled with low demand before the court ruling. Perhaps the biggest challenge right now is that Binance’s struggles could lead to its exit from the US market if it fails to comply with the SEC’s demands.
How much are 1,10,100 BNBs worth today?
The long-running battle between Binance US and the SEC has already had a negative impact on its business. For example, the exchange exceeded $10 billion in trading volume and has since fallen below $20 million. This reflects the shift that has taken place as most US users have withdrawn from using Binance.
If Binance US is launched, there will still be the global version of the exchange. However, the consequences are likely to be serious. 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 could get over the current situation.