The price of BNB has lost 6% of its value for 24 hours. This follows the announcement by the Commodity Futures Trading Commission (CTFC) to sue Changpeng Zhao. Binance’s important position within the cryptocurrency landscape is once again being felt.
The BNB token undergoes the complicated context for CZ
While the cryptocurrency market has been stabilizing for a few days, Binance’s BNB prints more than 5.3% drop in 24 hours. In question, a complicated context for the cryptocurrency exchange platform and its CEO, Changpeng Zhao.
The fall of BNB/USDT over the last 24 hours
The rest of the market has not been spared this news, as Binance is an important player in the ecosystem. Bitcoin (BTC) fell 3.5% following the announcement, as did altcoin representative Ether (ETH). The few native tokens of centralized exchanges are also impacted: -2% for Crypto.com’s CRO or -2.5% for Bitget’s BGB.
👉 Want to know more about the current state of the crypto market? Find the technical analysis of Vincent Ganne:
But what actually happened around Binance? In a nutshell, the United States Commodity Futures Trading Commission (CTFC) sued Changpeng Zhao (CZ), the famous founder of Binance. He is accused of having allowed certain American clients to circumvent the restrictions to trade derivatives on commodities.
In other words, CZ is accused of deliberately circumventing US law to satisfy some of its customers. Charges that he calls “ unexpected and disappointing“. As a reminder, the CTFC is an American federal organization responsible for regulating the stock exchanges where commodities are traded.
The fall of the market in reaction to this announcement illustrates the sense of regulatory uncertainty hovering over the cryptocurrency market and particularly in the United States, where attacks against associated service providers are increasing. It also speaks to Binance’s monopoly in the cryptocurrency landscape today.
👉 Also in the news — What are the risks of the influencer law for the French crypto ecosystem?
Take your investments to the next level with the analyzes of Vincent Ganne
Source: Trading View
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.