BNB is having a rough week. First, the token fell to its all-time low on Monday, hitting $210. Just one day later, the rumors that Binance CEO Changpeng Zhao is trying to liquidate a series of loans executed on the Vega platform pushed the token even lower to $206. Investors now worry that the floodgates are open and BNB’s fall will continue and are quickly looking for an alternative that may offset Binance Coin’s dips.
Whether Binance will manage to defend BNB before it slides even further, remains to be seen, but prudent investors are already purging their portfolios and investing their money elsewhere. Many of them have landed on Wall Street Memes (WSM) as an option, betting that the surging meme coin will provide far better ROI than other options. Judging by the success of WSM’s presale, they are betting right.
BNB Price Prediction – Regulatory Pressure Impacted Binance’s Native Token
The Bitcoin flash crash from last Thursday saw BTC dipping to $29.1k. The unexpected dip shook the entire crypto market, as the price of Bitcoin has always been one of the most significant market indicators. Over the weekend the situation seems to have stabilized, but then on Monday, another shockwave hit the market as BNB took a dive, hitting an all-time low.
The drop came as a surprise to many, but some experts were actually predicting it for some time now. Binance is facing increased scrutiny from various regulatory bodies in the United States on the heels of the FTX crash last year. In March, the situation culminated with a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC). CTFC accused Binance of illegal trading and lack of compliance in several key areas. As far as charges go, these ones are very serious and could even result in severe prison sentences if Binance is found guilty.
As if that wasn’t enough, the U.S. Securities and Exchange Commission (SEC) also took a swing at Binance, charging the crypto exchange and its CEO Zhao with violating securities laws by trading 11 cryptocurrencies the SEC chairman Gary Gensler declared securities.
Binance Lost Key Partnership due to Regulatory Issues
The severity of the situation exerted a lot of pressure on Binance as a whole and especially on its native token BNB. It also resulted in several key partners like Checkout.com abandoning Binance. The credit card processing company cited regularity issues as a reason to break ties with the popular crypto exchange, landing another body blow that caused significant damage.
However, the investors’ trust remained high and BNB’s price successfully defied it, even gaining value and reaching $348. Unfortunately, things took a turn for the worse in early Jun and BNB took a tumble. By the end of the month, its price was $231. But two events that happened in the last seven days may just push BNB past its breaking point.
Binance Leans on BTC for Support
Binance holds large Bitcoin reserves to act as a buffer and provide liquidity when needed. Recently, there were some indications that Binance’s management has been quietly selling off its BTC reserves to support BNB’s price and keep the token afloat. The last week’s Bitcoin crash threw a monkey wrench into that operation resulting in BNB’s dip.
But one piece of news that did the most damage to BNB’’s price came out on Monday. In October last year, some 2 million BNB tokens were illegally mined by hackers in a bridge exploit. The hackers used them to secure a $150 million loan from the Venus protocol, based on the BNB chain. The exploit was quickly discovered and Venus decided to liquidate the loan and turn the tokens over to Binance, which would burn them.
According to crypto analyst MartyParty, the first burn was exacted at $210.8, which is the price BNB reached on Monday. The second burn was planned at $190 and investors now fear that the BNB price will fall to that level after it happens. This has triggered several major BNB sell-offs as investors are trying to get rid of it before another major dip. A sizeable chunk of capital released from BNB holdings has found its way to WSM presale, pushing it past the $25 million mark and triggering the final presale stage.
WSM Emerges as the Best Candidate to Offset BNB Losses
Wall Street Memes is one of the most promising meme coins on the market since Pepe. The token is blazing through its presale, raising more than $25 million in a matter of weeks. The recent BNB troubles did help with reaching that milestone and all signs point out its price will explode once it hits the open market.
The presale was divided into 30 stages, triggering a price increase as each stage reached its goal. In the current final stage, the WSM price is set at $0.0337, but analysts predict that it is only a fraction of what WSM could cost once it starts appearing on crypto exchange later this year.
The community-based token enjoys massive support from several online groups, the biggest being r/wallstreetbets, a popular subreddit famous for waging a war against the Wall Street establishment over shorting of GameStop shares last year.
With millions of fans behind it, it is easy to see why so many analysts predict that WSM can outperform Pepe and become the latest meme coin sensation.
Conclusion
BNB’s streak of troubles continues as it takes yet another dip amidst rumors of Binance CEO executing a burn of illegal tokens. After lawsuits from CFTC and SEC, key US regulatory bodies, this may prove to be the tipping point for Binance token. Some investors chose not to wait for it, though, and have already started dumping their BNB tokens and investing in WSM, the latest meme coin wonder promising to outperform Pepe.
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