The SEC vs Binance episode wreaked havoc on the crypto market.
BNB’s TVL also fell significantly last month, but a few market indicators were upbeat.
Binance [BNB] has felt heat from all sides since the U.S. Securities and Exchange Commission (SEC) accused the exchange of various misconduct. Not just the deliveryran the exchange, but also took its toll on the overall crypto market, such as From Bitcoin [BTC] price witnessed a decline.
Is your wallet green? look at the BNB Profit Calculator
While this was happening, Binance also lost several of its top executives, further fueling the FUD around the exchange. How has the FUD fared which seems to be developing around the largest exchange? Has there been any impact on BNB as well?
Binance vs SEC 101
For starters, the SEC has taken legal action against Binance and its CEO, Changpeng Zhao, accusing them of mishandling billions of dollars and endangering investors’ assets.
The SEC also alleges that Zhao and Binance exercise control over the assets of the platforms’ customers, allowing them to mix or reroute customer assets at their discretion, including to an entity owned and controlled by Zhao called Sigma Chain .
The aftermath of the lawsuit
After the lawsuit, investor fears mounted, which was legitimate given the previous collapse of major exchanges like FTX, which caused a market crash. This time, while the market didn’t crash, it did some damage.
The episode caused a correction in the price of BTC, which worried investors as they feared a further fall in the price. However, that was not the case, as the market quickly recovered. But a remarkable fact is that investors lost confidence in Binance during that period as the exchange witnessed massive outflows.
FUD around Binance is far from abating
Investors and the entire crypto community as a whole were still concerned about the Binance situation as things did not cool down. According to Santiment’s latest tweet, Binance’s social volume has increased significantly over the past few days.
This happened just before BTC dipped below $30,000. This was also fueled by the resignation of several top executives at Binance.
😱 On top #Binance‘s regulatory pressure, the top #crypto exchange has been lost:
👉 General Advisor
👉Chief Strategy Officer
👉Senior Vice President of Compliance
👉Chief Global Investigations and Intelligence Officer#FUD is currently very high.https://t.co/h11unYOwD8 pic.twitter.com/009nde8A62— Santiment (@santimentfeed) July 7, 2023
Binance’s top executives, including the General Counsel, Chief Strategy Officer, Senior Vice President of Compliance and Chief Global Investigations and Intelligence Officer, have left the company, according to the latest report.
This could have further increased fear among investors, causing social volume to spike as the community continued to talk about the incident.
Is BNB affected in any way?
As this episode hit the entire crypto space, Binance’s native token, BNB, also took a hit – not just in terms of price action, but also in terms of network value. Artemis’ facts revealed that the blockchain’s TVL has fallen sharply in the past 30 days, sending a negative signal.
The same trend continued for DEX volume, reflecting a decline in popularity. However, it was interesting to note that the update had no impact BNB Chain’s network activity. This was evidenced by the increase in daily active addresses and transactions over the past 30 days.
Source: Artemis
What can you expect from BNB?
Investor sentiment around BNB did not appear to be improving as negative sentiment rose significantly over the past seven days. In addition, according to Lunar Crushbullish sentiment around BNB also fell 85% in the previous week.
The token’s Altrank also increased, which is a typical bearish signal.
Source: Sentiment
From CoinMarketCap, the price of BNB is down 2% in the past seven days. However, the situation seemed to change as the day card was painted green. At the moment of writing, BNB was trading at $236.96 with a market cap of over $36.9 billion.
A look at BNB’s daily chart gave an idea of what to expect from the token in the coming days.
Read Binance Coins [BNB] Price prediction 2023-24
Some stats favored the bulls, while others suggested otherwise. For example, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) recorded increases.
However, the Exponential Moving Average (EMA) ribbon supported the bears as the 20-day EMA was well below the 55-day EMA. The MACD also showed the possibility of a bearish crossover, increasing the likelihood of a downtrend in the coming days.
Source: TradingView
This post Will FUD around Binance cause further damage to the crypto market?
was published first on https://ambcrypto.com/will-fud-around-binance-cause-further-harm-to-the-crypto-market/
