Due to an investigation by the US Securities Commission in relation to one of the largest crypto exchanges, Binance, the price of Binance Coin, an official token of the platform, has fallen. Exchange officials deny everything, but Binance Coin price prediction today is very unclear. Let’s find out what happened and whether it is worth buying BNB!
What Is the prediction for Binance Coin Price?
The American Securities Commission (SEC) is once again focused on the cryptocurrency market. Now the regulator is investigating whether the Binance exchange management violated the securities law during a Binance Coin ICO in 2017.
According to anonymous sources, the reason for opening this case was the text published in Reuters. According to the publication, in the four years since the token launch in 2017, more than $2.5 billion was laundered through trading. And this situation took place due to the imperfection of anti-money laundering procedures, which every self-respecting legal cryptocurrency exchange must carry out.
Stock market traders had to refute the accusations of creating money laundering twice. At first, the exchange’s management stated that there were no violations and that journalists invented this story. Binance also refused to answer all questions from regulators, calling their interests inappropriate.
Then the head of the exchange, Zhangpeng Zhao, posted a huge fragment of the correspondence between Binance and Reuters in the process of preparing the material and also addressed the public with the words that journalists are wasting the time of respected people and misleading them. An attempt not to give trump cards to the investigation’s authors turned into financial losses. But, as practice shows, the news got on the Internet space is difficult to remove from there without reputational consequences.
The price of Binance Coin immediately fell by more than 8% and approached the exchange rate of $280. Then its price recovered, but the Binance Coin rate continued to change depending on the information background. So, what is the prediction for Binance Coin price?
What Is Binance Coin (BNB)?
Before we find out Binance Coin price prediction, let’s learn the basic information about BNB. Binance is one of the top largest crypto exchanges in the world, and its token is a regular participant in the top 5 ranking of crypto by market cap. The coin reached its maximum exchange rate last year — $686 about a year ago, and then began to fall, losing more than 57% in price. A BNB coin is the main unit of account within the Binance exchange.
The exchange itself was invented by three Chinese businessmen who held various positions in managing two crypto platforms: Blockchain and OKCoin. It is clear that crypto exchanges rarely work on the market on their own, most often, they create a whole ecosystem around themselves. Binance is no exception. The exchange has a number of other products like Binance Chain and Binance Smart Chain blockchains, cryptocurrency wallets, and more.
There was also a place for a native token, which was released according to ERC-20 standards on the Ethereum blockchain. This is a utility coin that actually serves the interests of a cryptocurrency holding — it is used to pay for digital transactions and transfers on the Binance Smart Chain network, as well as various sales of tokens.
All users who pay with this coin are entitled to a discount, the average value of which is 18%. A mechanism for burning excess money supply is implemented to maintain the coin’s stability and liquidity. It all depends on the volume of trading and eliminates an inflationary component.
More than half of the 200 million coins will be burned this year, and more than 1.8 million tokens have already been disposed of in the first three months of the year. The exchange plans to burn almost 100 million BNB coins. According to experts, 163 million native tokens are currently in circulation.
Binance Coin Future Price Prediction
How does the SEC influence Binance Coin price prediction today? Well, the SEC is increasingly making claims against cryptocurrency projects that have raised funds from private investors without a special license. The main accusation is the assumption that the funds were raised in violation of the US Securities Act.
The Commission takes the position that companies must comply with securities laws, regardless of the industry they operate in or what their investment products are called.
The process of raising funds for the project’s development, aka ICO, takes place via an initial sale of digital tokens. An analog of an ICO in the traditional securities market is an IPO, a first public sale of a company’s shares to raise funds for business expansion. J. R. Willett proposed the first ICO in 2013, and then his Mastercoin project successfully raised about 5K bitcoins. The regulator has repeatedly clashed with the largest blockchain companies.
Binance Coin Price Prediction Today: To Buy or Not to Buy?
Regulatory intervention is far from the main component of positive or negative Binance Coin price prediction. At the moment, according to experts, bears reign in the market, and the crypto winter with negative growth will last for another couple of years. At least the technical analysis indicators confirm this thesis.
But in the long term, analysts are confident in the token price growth, and the Binance Coin future price prediction looks rather positive.
First, there is almost a 50% discount on fees for all transactions on the Binance exchange. Secondly, we can name constantly ongoing airdrops when investors receive random tokens for free, which, in theory, can bring income. With Binance Coin’s help, you can participate in various ICOs, which are carefully selected by the exchange management. One shouldn’t forget about burning excess coins, helping to increase the token’s capitalization, which positively affects the Binance Coin price prediction 2022.
Still, the main growth factor for the token is the desire of the exchange to become a decentralized platform. On such an exchange, all transactions between investors are carried out directly, without intermediaries, through personal crypto wallets. It will not be necessary to store crypto coins on the exchange. In addition, on decentralized platforms, user security is many times higher than on classic crypto platforms, which in general will have a positive impact on the Binance Coin future price prediction.
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What is the prediction for Binance Coin price? Feel free to share your forecasts in the comments below. Have a great weekend!
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