As the FTX trial for fraud and money laundering continues, yet another of the most popular crypto exchanges, Binance, is undergoing an existential crisis. Soon after the US’s SEC charged the business with fraud and deceiving regulators, a payment processor, Paysafe, suddenly announced halting the Euro transactions for Binance, which later exited the European markets, including the Netherlands.
Alongside, the native token is facing severe impact as the value is sliding down drastically and has lost more than 65% since its highs at $675 in May 2021. BNB is currently the core of the Binance exchange business model and holds a market share of more than $32.5 billion. Therefore, it’s quite obvious that a crackdown on the BNB price could majorly impact the exchange and vice versa.
Back in 2022, when an investigation revealed the FTX exchange held a huge amount of FTX tokens, the exchange faced massive heat, which is going on to date. A similar event could occur with the top exchange, Binance, as a report claims it controls 76% of the outstanding BNB as of August 2023.
Besides the token, BNB is also showcasing huge signs of following in the footsteps of the FTT token. Huge similarities between the price of BNB and FTT are witnessed, depending on which it is speculated that the price may slide down in the coming weeks.
As seen in the above charts, the BNB price is at the threshold of a major bearish move. If the token replicates the FTT’s breakdown, it may end up trading in a single digit or even below. However, it all depends on the revelations with respect to the Binance exchange, which may be extremely crucial for the entire crypto space in the coming days.