Looming danger for the $BNB Token.
Binance the world`s leading cryptocurrency exchange could soon be at the helm of a major Margin call followed by a possible devaluation of its native token $BNB.
The Increasing pressure from Authorities and liquidity crises surrounding the crypto market have led to a cascade of troubles for any crypto exchange.
As the legal battles and investigations continue, Binance finds itself in a precarious position once again which could this time lead to a similar fate as its biggest competitor the now de-funked (FTX)
$BNB Margin call & Liquidations
Binance`s native coin $BNB is in the limelight and rumoured to be at the brink of a major margin call.The $BNB token has seen a devaluation of more than 30% since the beginning of 2023 as have many crypto currencies
Analysts in the market have been following the movement of $BNB and recent actions fro CZ (Changpeng Zhao) the Binance co-founder and CEO have led experts to believe the native token is in trouble.
Major sources are more than certain that $BNB`s price must remain above 200- 215$ to avoid a de buckle of the crypto currency.
“BNB’s support above $212 is vital due to a massive BNB-backed loan set to liquidate at that price, pushing Binance into a “fatal margin call”. The analyst also speculates on CEO CZ’s actions and alleged US regulatory involvement.” @coinCrux Crypto news
Selling $BTC to Boost $BNB price
Rumours are Binance has a huge $BNB backed loan that is set to be liquidated if it falls below 200$.Thus the allegations of CZ resorting to selling Bitcoins in order to support the price of $BNB above the given price level with some calling it a desperate effort to save the $Binance Exchange and $BNB token.
Crypto influencer WhaleChart took to X (formerly Twitter) earlier this month to report that Binance was allegedly dumping BTC to support the price of its BNB token.
Some users have taken it a step further by tracking transactions for an alleged Zaho wallet “bc1qm34lsc65zpw79lxes69zkqmk6ee3ewf0j77s3h” from BTC to USDT and thereafter to BNB.
While there were no sources to confirm the allegations, several Binance users on X complained that they were unable to withdraw their BTC from the crypto exchange due to a temporary suspension of withdrawals.
Current Situation
Currently the $BNB is trading at 219$ but speculations of the 200$ floor to be broken are getting high with targets at 180$ and below
A crypto trader and analyst “Crazy Russian ” was bold on X making speculations that $BNB will drop below 200$ but will not go to zero. as many may be led to believe in the margin call and Liquidation to be the end of $BNB and Binance
We all know $BNB is dropping hard and most of the degens are asking if $BNB is going to collapse like FTT or $BNB is going to 0.
— CRAZY RUSSIAN (@rutradebtc) August 22, 2023
Well the answer is NO.
The extreme level is marked in chart (182$), If the price closes below it, $BNB will collapse more but it ain't going to 0. pic.twitter.com/K5r83RQvrD
Some say the actions were similar to the play book followed by Sam Bank man-Fried and de-funked FTX exchange before it went bankrupt the previous year.
CZ has since come out to publicly deny these allegations in a twitter post stating how impossible it is to tell that he was the one making those transactions
4. Binance have not sold BTC or BNB. We even still have a bag of FTT.
— CZ 🔶 Binance (@cz_binance) June 13, 2023
It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD. 🤷♂️ pic.twitter.com/M3MUH2bFRE
Binance in the cross hairs of the SEC
Unfortunately the woes come on the heels of Binance`s legal battles with the SEC(U.S. Securities and Exchange Commission) from June 5th 2023 and CFTC (The Commodity Futures Trading Commission`s) money laundering investigations into the entity
Earlier this Month we saw Binance lose strategic partnership with Checkout.com, the London-based credit card processing company citing “reports of regulators actions and orders in relevant jurisdictions” and “inquiries from partners.”in a letter sent to Binance on the 9th August 2023.
And Experts believe that these challenges serve as a wake-up call for investors to exercise caution and conduct thorough due diligence when engaging with crypto exchanges.
With some “persistent of Binance`s global scam and BNB being just a cheap fiat with its fall eminently close.”
“Could this be the straw that broke the camel`s back” for Binance and CZ.
Only time will tell.
