The $4B fine looming over Binance sparks concern: Can they pay or face bankruptcy? With CEO Changpeng Zhao stepping down and accepting charges, questions arise about his fate compared to other crypto CEOs. Suspicion lingers if SEC/DOJ is protecting Binance, the largest exchange, to cushion the crypto market. Investors await an uncertain outcome in this complex scenario. Can you compare and reflect on this? If Binance goes bankrupt or completes a shutdown. Imagine the FOMO and Panicking in the market due to CZ’s resignation.
Interestingly, the settlements come just a month after Sam Bankman-Fried was found guilty of fraud in the most extensive trial in crypto history. Last year, Binance famously dropped an offer to acquire his exchange FTX on the brink of bankruptcy.
Will Binance go Bankrupt like FTX? Trading Volume dropped 60%
As per Kaiko report, Binance’s daily trading volumes have significantly decreased with DOJ’s intense scrutiny, reaching around $10 billion from last year’s $20-30 billion average. Despite a substantial $4 billion fine, a deferred prosecution agreement might allow staggered acceptable payment within two years.
Binance Coin (BNB) saw a drop of 11.2% in daily trading volume to $389.5 million, prompting analysts to forecast a potential additional 12% drop. If this occurs, it could breach the $234.6 support level, pushing prices towards $200, historically a strong support zone on the weekly chart.
WhaleWire, a crypto expert, seems to be quite alarmist and speculative. While it points to the implications of regulatory actions against Binance and the potential aftermath of CZ’s legal issues, it’s crucial to note that predicting exact price targets and the collapse of a major exchange like Binance is speculative and lacks concrete evidence. Statements like “no more fraud or price manipulation” due to regulatory actions could have significant effects, but predicting a complete market crash and Binance’s bankruptcy seems overstated without clear substantiation. But what does it mean for BNB?
BNB to Drop Below $5?
Predictions include Binance Coin (BNB) falling below $5 and bankruptcy. These forecasts are based on supposition, not proof or official declarations. Regulatory and legal difficulties can affect businesses, notably bitcoin exchanges, but predicting their future and market influence is too speculative. However, a crypto crash is inevitable after investors rush to remove $10 billion from Crypto/Bitcoin. The US Settlement and investors’ and CEO’s departure from Binance raises concerns about its bankruptcy.
Binance’s bankruptcy rumors have caused market FOMO—will crypto fall like 2008? Only time will tell.
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- Source: https://coinpedia.org/news/binance-exchange-on-the-verge-of-bankruptcy-trading-volume-drops-heavily/
