Binance Coin Price Prediction as CFTC Sues Binance – Is This the End of Binance Crypto Exchange?
The announcement that the CFTC has filed a civil enforcement action against Binance and its CEO, Changpeng Zhao, has caused the price of Binance Coin (BNB) to plummet 5% in the last 24 hours, falling to $310.
While the exchange token has increased by 2.5% over the past 30 days and by 26% since the year’s beginning, BNB has decreased by 7.5% in the last week to $310 as well.
Several charges have been made by the CFTC against Binance, including that the exchange allowed derivatives trades for US users without requiring proper registration and that it did not require customer identity verification before allowing trading on the site.
The exchange has strongly reacted to the regulator’s claims, so it’s far from certain that it faces an existential threat. Still, the CFTC is pursuing harsh penalties for Binance, including “permanent trading and registration restrictions.”
Binance Coin Price Prediction as CFTC Sues Binance – Is This the End of Binance Crypto Exchange
In other words, the current decline in BNB won’t end until the 30-day crosses meaningfully below the 200-day, which might not occur for another week or so.
As a result, the price of BNB may soon drop below $300 on the market. As of March 11, the coin’s price was as low as $275.
If we accept the CFTC’s accusations at its value, the situation for Binance and its BNB coin might become considerably worse.
These claims include the following:
- Customers and employees of Binance have been told to circumvent CFTC compliance measures.
- Although it sought out and provided services to US-based consumers, the exchange purposefully designed its operations to circumvent US registration requirements.
- Zhao used the Binance trading platform to conduct insider trading through over 300 different Binance accounts.
If accurate, this last assertion is particularly devastating, and many cryptocurrency enthusiasts have already fiercely criticised the exchange for it.
The charges are so serious, in fact, that many industry experts now appear to believe that the regulator has a possibility of seriously harming Binance’s operations.
But, Zhao has already written a blog post disputing the CFTC’s allegations, and Binance has started to defend its position in reaction to the regulator’s move.
Yet if the CFTC prevails in its legal battle, Binance would be faced with an existential danger to its company as well as some hefty financial fines.
If so, BNB is probably going to fall considerably more than it is right now, albeit it is still very early in the process, so it would be foolish to place a strong wager in either direction.
And even if BNB is headed for a rough ride, the market may also end up being affected, as shown by the SEC’s Wells notice issued against Coinbase.
It appears that US regulators have made the decision to take a strong stance against most of the industry, which might have a detrimental effect on prices across the board.
Coinbase has reacted vehemently to the SEC’s allegations against it, similar to (or perhaps even more so than) Binance, so only time will tell.
Is Now a Good Time to Buy BNB?
Given that Binance is currently facing legal action, it is probably not a good idea to purchase BNB at this time. BNB could experience further declines over the next several days and weeks.
Due to the abundance of high-potential tokens that are now demonstrating promise, traders seeking significant gains may choose to focus on other coins at the time.
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