The Decline of Binance Coin (BNB) Amidst Controversies and Challenges
The Lowest Price Point Since the Bullrun of Two Years Ago
The crypto of the massive trading platform Binance has witnessed a significant decline in the past week. One of the world’s most renowned digital currencies, Binance Coin (BNB), reached a low point of $206.2, after experiencing a drop of nearly 13%. This marks the lowest price of BNB since the bullrun two years ago.
Impact of FTX and the Loss in Value
In the past 12 months, BNB has lost a staggering 30% of its value. The crypto had already approached this low point last year following the fall of FTX.
Biggest Blow to BNB Since SEC Lawsuit
However, last week’s decline was not the major blow for BNB this year. The most significant setback occurred two months ago when the United States Securities and Exchange Commission (SEC) filed thirteen charges against Binance. The SEC accused Binance of selling certain cryptos without the required licenses, classifying them as securities. Furthermore, the world’s largest cryptocurrency exchange was also alleged to have engaged in fraud and market manipulation. The legal battle between the two parties is still ongoing.
Increased Challenges and Controversies for Binance Coin
The continuous decline in the value of BNB is likely linked to the recent developments surrounding the trading platform. Since the SEC’s lawsuit against Binance, problems for the crypto exchange have been mounting. Binance has withdrawn from several European countries, including the Netherlands. Additionally, the company recently lost a major payment processor and discontinued its payment service, Binance Connect.
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Moreover, complaints have been pouring in from users encountering issues with EUR transactions. Users have taken to Twitter to express their frustration with transaction problems involving the euro. Binance’s helpdesk responded, stating that direct transfers for EUR currency are currently undergoing maintenance. Users are advised to explore alternative transaction methods for depositing and withdrawing EUR currency.
As of now, Binance has not issued an official statement regarding the aforementioned euro-related issue.
The uncertainties and negativity surrounding the trading platform continue to escalate, resulting in a negative reaction to the BNB price. Fans and cryptocurrency traders are capitalizing on the fear, uncertainty, and doubt (FUD), contributing to the current demise of BNB. Nevertheless, BNB still holds its position as the fourth largest cryptocurrency in the world.
Conclusion
The recent decline of Binance Coin (BNB) highlights the challenges faced by the Binance cryptocurrency exchange. From legal issues and controversies with regulatory bodies to withdrawal from key markets, Binance has been navigating a turbulent period. The declining value of BNB is a reflection of the uncertainty surrounding the platform. However, it is important to note that the cryptocurrency market remains volatile, and future developments may impact the price of BNB. Investors and traders should carefully monitor these situations and make informed decisions.