- Binance has been under pressure from all sides since the Securities and Exchange Commission (SEC) accused the exchange of various errors.
- After the lawsuit, fear increased among investors because the collapse of major exchanges like FTX in the past had caused a significant market downturn.
- According to the latest report, key figures including Binance’s Chief Legal Officer, Chief Strategy Officer, Senior Compliance Vice President, and Global Investigation and Intelligence Director have left the company.
Following the actions taken by the SEC against Binance exchange and CEO CZ, FUDs around the exchange have increased, and the cryptocurrency market suffered during these events.
SEC Pressures Not Only Affected Binance
Binance has been under pressure from all sides since the Securities and Exchange Commission (SEC) accused the exchange of various errors. This situation not only affected the exchange but also caused a decrease in the price of Bitcoin.
Meanwhile, Binance also lost its top executives, further increasing the fear surrounding the exchange. The SEC initiated legal proceedings against Binance and its CEO Changpeng Zhao, accusing them of mishandling billions of dollars and endangering investors’ assets.
The SEC also claims that Zhao and Binance have control over customers’ assets on the platforms and allow them to mix customer assets according to their own wishes or redirect them to another asset, Sigma Chain.
No Major Collapse Occurred After the Lawsuit, but the Market Suffered
Fear increased among investors after the lawsuit because the collapse of major exchanges like FTX in the past had caused a significant market downturn. This time, the market did not collapse but caused some damages.
This event led to a correction in the price of BTC, and investors were concerned that the price would further decrease. However, that was not the case, and the market quickly recovered. However, a notable point was the loss of trust in Binance by investors and significant outflows from the exchange during that period.
FUDs Around Binance Continue
Investors and the entire crypto community are still concerned about the situation as it has not calmed down. According to Santiment’s data, Binance’s social volume has significantly increased in the past few days.
This happened just before BTC dropped below $30,000. It was also triggered by the resignation of numerous top executives from Binance.
According to the latest report, key figures including Binance’s Chief Legal Officer, Chief Strategy Officer, Senior Compliance Vice President, and Global Investigation and Intelligence Director have left the company. This may have further increased fear among investors as the community continues to discuss the incident.
How Was BNB Affected?
This event affected the entire crypto space, and BNB, Binance’s native token, also took a hit in terms of both price movement and network value. According to data, the TVL (Total Value Locked) of the blockchain experienced a sharp decline in the past 30 days, indicating a negative signal.
The same trend applied to DEX volume and reflected a decrease in its popularity. However, interestingly, the update did not affect the network activity of the BNB Chain. This can be understood from the fact that daily active addresses and transactions increased in the past 30 days.
Investor sentiment around BNB does not seem to have improved as negative sentiments have significantly increased in the past seven days. Additionally, according to reports, bullish sentiment around BNB decreased by 85% last week.
BNB’s price has dropped by 4.7% in the past seven days. At the time of writing, BNB is trading at a price of $234 with a market capitalization of $36.6 billion.
While some metrics favor the bulls, others suggest the opposite. For example, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) have shown an increase.
However, the Exponential Moving Average (EMA) Ribbon supports the bears as the 20-day EMA is well below the 55-day EMA. The MACD also indicates a possibility of a downward trend that could lead to a further decline in the coming days.
