Is Binance Coin (BNB) Going The FTT Way?
Key Takeaways:
Binance’s legal battle with the SEC could harm the crypto firm’s future.
BNB coin might become a victim of FUD and collapse in an FTT-esque way.
NEW DELHI (CoinChapter.com) — Crypto exchange Binance came under regulatory scrutiny when the US Securities and Exchange Commission alleged that the exchange committed securities laws violations.
FUD storms are growing on the horizon for the crypto sector, with rumors of the Huobi exchange facing insolvency problems rising. Tron founder Justin Sun responded to the exchange’s insolvency rumors, urging his audience to “ignore the FUD and keep building.”
However, accusations of personal involvement in the USDT outflow build might render Sun’s assurances moot. Meanwhile, speculations about Binance Coin (BNB) heading the way as the FTX token.
Furthermore, a Semafor report stated that the US Department of Justice officials remained worried about a run on the exchange due to the SEC lawsuit. A run would likely result in a fate similar to what happened to FTX.
Binance CEO Following SBF’s Footsteps, Says Analyst
Pseudonymous crypto analyst Il Capo Of Crypto, who took a break from X (then Twitter), warned his Telegram followers of BNB leading an impending market crash.
Capo shared some similarities between FTX founder Sam Bankman-Fried’s tweets before FTX’s crash and Binance CEO Changpeng ‘CZ’ Zhao’s recent tweets.
The analyst highlighted that Binance moved nearly 30 million BNB coin in five separate transactions in early July 2023. Afterward, CZ stated that the large transactions were a result of the exchange’s token redistribution and assured users that there was nothing alarming about the transactions.
However, Crypto Capo noted that the Binance CEO had, in Nov 2022, warned users against exchanges that moved “large amounts of crypto before or after they demonstrate their wallet address.“
Binance had warned users when they started selling their FTT holdings last year, stating that they would “do it slowly” to avoid a run on the exchange.
However, the run still happened, ruining any chance FTX might have had of surviving. Crypto Capo speculated that despite the US DoJ’s concerns, the government might not be interested in preventing an exchange run on Binance.
The analyst noted the market “looked bad” despite Bitcoin giving the “false illusion” of strength.
I don’t trust Binance, Huobi, Coinbase, CZ, Justin Sun, or stablecoins (especially BUSD, USDC, and TUSD but neither USDT). I think we are going to witness a massive capitulation event that should mark the end of this bear market.
Crypto Capo told his Telegram followers
Furthermore, Capo shared that BNB coin held the largest share among his short positions.
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Filed under: Bitcoin - @ August 8, 2023 7:48 pm