BNB Displays Short-Term Bullish Momentum Amidst Massive Binance Outflows

Christian Encila

2 years ago

4 mins read

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Binance finds itself entangled in a lawsuit filed by the US Securities and Exchange Commission (SEC), dealing a heavy blow to BNB, the token issued by Binance. The allegations leveled against the crypto exchange suggest its involvement in unlawful activities, specifically multiple violations of securities laws.

Consequently, the impact of these allegations manifested as substantial outflows from the exchange, prompting Changpeng Zhao, the CEO, to disclose an astonishing figure of over $392 million in net outflows in the last 24 hours. It’s worth noting that Binance has dealt with significant outflows before, indicating a history of navigating such challenges.

According to our data, last 24hrs, @Binance net outflow is about $392m.

Our wallet addresses are public. Some 3rd party analytics measure Change in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as “outflow”.…

— CZ 🔶 Binance (@cz_binance) June 10, 2023

Meanwhile, in the wake of the SEC filing, Nansen data indicates that Binance witnessed a staggering amount of nearly $3 billion in outflows. The aftermath of the recent lawsuit has caused BNB to plummet in value. Coingecko reports that the token has experienced a drastic decline of over 23% in just the span of a week.

Source: Nansen

Binance Vs. The SEC: What’s The Gist?

According to the official SEC press release, the company and 13 other entities are being sued for the operation of an unregistered exchange and the commingling of customer funds through companies related to Binance.

The regulatory body also alleges that Binance had knowledge of the regulations regarding exchanges and securities but chose to ignore those laws, putting investor funds at risk just to maximize profits.

They also highlighted the sale of unregistered securities. The SEC targets the company’s “Simple Earn” and “BNB Vault” crypto-lending products. These products are part of Binance’s staking service and, with the recent crackdown on staking services by the SEC, are considered securities by the regulatory body.

BNB market cap currently at $36.6 billion on the weekend chart: TradingView.com

The SEC also targeted Binance’s failure to restrict the exchange’s services to US citizens. Just this March, the Commodity Futures Trading Commission (CFTC) alleged that the company is breaking various financial laws including the ones intended to stop money laundering. The SEC also remarked that Binance misled customers through “strategic and targeted wash trading”.

BNB Yet To Make A Comeback

Since then, BNB is the only altcoin that has not rebounded since the general market downturn. However, analysts are still somewhat bullish in the short-term capacity of the coin despite the market’s recent slippage.

Source - Coingecko

At the token’s current price point of $235, BNB bulls should defend the $234 support level to target higher highs in the short term as long as no bearish news hits the market. But at the moment, it seems that the weight of the bears will defeat any attempt for a bullish breakout.

However, if the bulls are able to defend this support level, a return to the $300 price point might be possible. Despite the optimism in the market, developments in the lawsuit will surely affect BNB in the long term.

Featured image from Protos

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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