BNB Dumps 6% As CFTC Sues Binance And CEO For Non-Compliance

Dalmas Ngetich

2 years ago

2 mins read

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BNB, the native currency of the Binance ecosystem, is down 6% in the past 24 hours, trackers on March 28 show.

BNB Slips 6% As Sell Pressure Mounts

As the coin remains under pressure, it is underperforming the broader cryptocurrency market, trailing Bitcoin, Ethereum, and others within the same period.

BNB Price On March 28| Source: BNBUSDT On Binance, TradingView

As an illustration, Ripple (XRP) is up 24% in the last day, a performance divergent from the state of affairs in BNB, topping the top 50 in the last week of trading.

BNB is now trading at $309, down 6% in the past 24 hours. With increasing participation levels as trading volumes show, the coin has also broken below a critical support line as visible in the BNBUSDT daily chart. A notable observation is that the coin is edging lower, mirroring the bearish bar of March 22 when the United States Federal Reserve (Fed), raised interest rates as expected by economists, forcing crypto assets, including BNB, lower.

At the time of writing on March 28, BNB was relatively stable after yesterday’s drawdown. However, considering the bearish engulfing bar that drove prices below $320, and the failure of buyers to drive prices higher today, there are hints of weaknesses.

Based on the present candlestick formation, there are suggestions indicating that the coin could post more losses unless buyers step in in the sessions ahead. Presently, the level marking March 22 lows at $320 has turned to resistance and might be level chartists closely watch.

Specifically, technical indicators, especially moving averages are “bearish” within the last six to 24 hours, reflecting the dump of BNB prices during that time. Meanwhile, overbought and oversold indicators like the Bollinger Bands, Relative Strength Index, and Stochastic are mostly “neutral” in all time frames.

Binance Buys BNB, Sued By The CFTC

On March 13, the BNB coin was among the top-performing assets in crypto, together with Bitcoin. Then, the CEO of Binance, Changpeng Zhao said the exchange will be converting the $1 billion of the Industry Recovery Initiative Fund, to among other coins, BNB and Bitcoin.

Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.

— CZ 🔶 BNB (@cz_binance) March 13, 2023

BNB’s price rose on this news and CEO Changpeng Zhao, while justifying this decision, cited regulatory changes, especially relating to stablecoins and the banking crisis, as the reasons behind the move. A few days earlier, the Silicon Valley Bank (SVB) had experienced a bank run, impacting USDC which briefly de-pegged.

Although BNB remains bullish for longer time frames, the cryptocurrency might be negatively impacted in the days ahead. The United States Commodity Futures Trading Commission (CFTC) is suing Changpeng Zhao and Binance for violating trading laws and giving access to citizens.

The lawsuit also states that Binance has been obfuscating the identity of its chief executives stating the exchange’s “reliance on a maze of corporate entities to operate the platform is deliberate; it is designed to obscure the ownership, control, and location of the Binance platform.”

Featured image from Canva, chart from TradingView.com

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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