Binance Coin (BNB) has recently experienced a drop below its 200-week moving average, raising concerns about potential significant losses among altcoins, particularly those following the BEP20 and BEP2 standards.
Moreover, the prevalence of Fear, Uncertainty, and Doubt (FUD) surrounding Binance has directly impacted BNB’s price performance. Most recently, on August 21st, the exchange officially restricted customer access in the European Union due to issues related to transfers within the Single Euro Payments Area (SEPA). As a result, the value of BNB dropped even further.
Although BNB remains the fourth-largest cryptocurrency by market capitalization, its recent performance has been alarming. BNB has traded below the $210 threshold, its lowest point since June 2022. Additionally, BNB has lost 32% since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO back in June.
Facing the recent Binance FUD, industry analysts fear that BNB could suffer a similar fate as FTT and the FTX exchange did in November of the previous year. Given Binance’s current position, it’s challenging to precisely predict the ripple effects it might have on the entire industry.
With BNB’s ongoing price decline, various theories suggest that Binance CEO CZ is taking action to rescue his “beloved” token. However, the situation has become more critical as reports consistently allege that Binance has been selling Bitcoin to support BNB. Notably, some Binance users have complained that they can’t withdraw BTC due to temporary withdrawal suspensions.
While there’s no official confirmation of these reports, the cryptocurrency community remains in a state of high anxiety.
At the time of writing, BNB is trading around $213, showing slight recovery over the past 24 hours.
It’s evident that Binance’s current challenges underscore the complexity of the cryptocurrency market and emphasize the significance of regulations. However, to maintain its position, the exchange must address these concerns to regain investor trust and ensure the stability of its native token – BNB.