BNB price dips following a huge transfer of about 63,340 BNB tokens from an unknown wallet to Binance. The negative price reaction also comes amid the legal battle with the Securities and Exchange Commission (SEC).
In a recent report by Whale Alert – an advanced blockchain and analytics platform, an unknown whale made the transfer about 4 hours ago from press time. The effect of this transfer made the price drop as low as $222 at the time of writing.
Source: Whale Alert
Besides this, BNB is also affected by the ongoing legal tussle between Binance, its CEO, and the Securities and Exchange Commission. Recall that the SEC classified BNB and the Binance-associated stablecoin BUSD as unregistered securities, but the company already refuted the claims.
Furthermore, many believed that the Binance case would get more heated if the US Department of Justice investigated and prosecuted criminally owing to SEC fraud claims.
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Related Reading: BREAKING! Binance is Unregistered and Illegal in Nigeria – SEC
Even though Binance has repeatedly reassured its users that the exchange continues to function without interruption in the face of the challenges, trust and speculations are still shaken.
Binance has also pointed out in its statements that it operates within the law and on the principle of legal compliance and transparency in terms of customer funds.
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully…
— Binance.US 🇺🇸 (@BinanceUS) June 6, 2023
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Possible BNB liquidation at $218.55
BNB will be liquidated when it hits a price of around $219.32, which is equal to $200 million of BNB sold on the market, according to DefiLlama’s (a DeFi TVL aggregator) estimations. It is just a few steps away from the liquidation barrier at the present price.
Source: Defillama
Per this report, once over 200 million worth of BNB is in circulation, it will cause an even more downward trend in the price of the token. This can in turn cause panic within the whole community.
BNB price today
BNB price dips today to $222 according to live data from CoinMarketCap. Furthermore, the data shows that the price is down 4.99% in the last 24 hours. What’s more, BNB is still one of the top cryptocurrencies in the market as it is ranked #4 on the CoinMarketCap chart with a live market cap of $35,097,432,427.
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.