As FTX, the biggest crypto exchange by trading volume, collapses, speculations and rumors about Binance have been growing. On December 12, Reuters reported that the US Department of Justice prosecutors are currently conducting an investigation into the company, according to four sources. At the same time, the value of many cryptocurrencies has risen over the past week.
Binance FUD Affects BNB, Token Exchange of the World’s Largest Crypto Exchange.
The recent FTX crash has caused a lot of speculation and fear (fear and doubt). Numerous rumors have been spread on social media regarding Binance’s Proof of Reserves (POR) and criticism of the company’s efforts in this regard.
On December 13, Changpeng Zhao, or CZ, addressed FUD on Twitter. “FUD helps us grow even though they are completely annoying,” CZ tweeted “You can FUD on someone without explicitly mentioning her name, which raises awareness. It also helps unite his supporters because he forms a common defense alliance.”
C.Z. insisted That this was true from the start. Binance has been frequently targeted by FUD. Some of it was allegedly funded and sponsored by large exchanges. “Since then, barely a week has gone by without FUD. We learned the ability to ignore them and keep building,” CZ said in the same Twitter thread.
CZ’s comment follows a Reuters report published on December 12. The report states that the US Department of Justice is currently conducting an investigation into Binance. Reuters reported on Monday, citing four people familiar with the matter, that DOJ prosecutors are at an impasse over the alleged investigation. Reuters reporter Angus Berwick wrote that the dispute between DOJ prosecutors is “delaying the conclusion of a long-running criminal investigation” into Binance.
Meanwhile, BNB, the token exchange of the world’s largest cryptocurrency exchange, Binance, has been hit hard by the speculation surrounding it. BNB, a crypto exchange token, has lost 8.5% in the past two weeks.
BNB’s daily statistics show that it is trading at $39.45, down 6.9% in the past seven
Amidst speculation and rumors surrounding the crypto exchange Binance, its native token BNB is suffering losses from alleged ‘FUD’ (fear, uncertainty, and doubt). The token lost over 8 percent to the US Dollar on Tuesday morning (9am ET). This trend does not reflect the performance of other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) which saw increases of 5-7%.
Despite the losses, BNB has still outperformed crypto-assets such as BTC and ETH since the all-time highs in 2017. BTC is currently 74% lower than its ATH, while ETH is down 72%. BNB, however, is only 6.8% lower than its high unit price of $686, which was printed on May 10, 2021.
What do you think of all the rumors and speculation surrounding Binance? What do you think about the recent performance of BNB in the market this week? Let us know your opinion by leaving a comment below.
