The price of Binance Coin (BNB) has fallen by 11.7% in the last 30 days, according to data provided by cryptorank; This drop in the token may be related to the pressure exerted by the United States authorities on Binance, one of the main cryptocurrency exchanges.
At the time of writing this note, BNB stands at $287.05 per unit, showing a continuous downward trend. The data shows that it is close to showing a new band below $280.
BNB price represented in 24-hour candles, as of March 7, 2023 – Source: Cryptorank
What really affects BNB?
For some time now, US authorities have been investigating Binance for alleged violations of securities laws.. The pressure has intensified in recent weeks, which has generated uncertainty in the cryptocurrency market. As a result, the value of BNB has decreased by 11.7% in the last 30 days.
But that is not all. Paxos, a fintech company that issues BUSD (a stablecoin pegged to the US dollar), stopped issuing BUSD on February 23. This has had an impact on the value of BNB, creating mistrust in the ecosystem that runs Binance..
Although investors are concerned about the drop in the price of BNB, some experts believe that the situation is not necessarily negative. According to them, the actions of the US authorities and the suspension of BUSD by Paxos could be a sign that steps are being taken to regulate the cryptocurrency market and improve its security.
Meanwhile, Binance has issued a statement stating that it is working with the authorities to resolve any issues and ensure that all regulations are complied with. He has also promised that “will continue to provide a safe and reliable service to its users“.
The situation is uncertain but statements like those of the president of the United States Stock Exchange generate more mistrustwhen he states that “Instead of properly segregating crypto investors, these platforms have mixed those assets with their own crypto or other crypto investors. When these platforms fail — something we’ve seen time and time again recently — active investors have often become property of the failed company, leaving online investors in bankruptcy court.”. These statements were made on February 15, just after news broke that Paxos was being forced to stop issuing BUSD.
BNB Price Last 90 Days – Source: TradingView
The graph shows how BNB had started an appreciation run for the token but, from February 5 until now, it has not stopped depreciating.. The reasons that have been outlined here are part of global events that definitely affect cryptocurrency directly.
Although Cryptorank, for example, places it in the fourth place in the top 10 of the main cryptocurrencies in the ecosystem, the truth is that the massive exit of the token shows how sensitive investors are to pressures that the American authorities are exercising on Binance and cryptocurrencies in general.
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