Binance’s share price has lost 6% of its value in the past 24 hours. This follows the Commodity Futures Trading Commission’s (CFTC) announcement to sue Changpeng Zhao. Binance’s important position within the cryptocurrency landscape is once again being felt.
BNB token suffers from complicated backdrop for CZ
While the cryptocurrency market has been stabilizing for a few days, the Binance BNB prints a drop of more than 5.3% in the space of 24 hours. At fault is a complicated context for the cryptocurrency exchange platform and its CEO, Changpeng Zhao.
The fall of BNB/USDT over the last 24 hours
The rest of the market has not been spared this news, as Binance is such an important player in the ecosystem. Bitcoin (BTC) fell 3.5% following the announcement, as did the altcoin representative, Ether (ETH). The few native tokens of centralized exchanges are also impacted: -2% for Crypto.com’s CRO or -2.5% for Bitget’s BGB.
But what actually happened around Binance? In a few words, the Commodity Futures Trading Commission (CFTC) of the United States filed a complaint against Changpeng Zhao (CZ), the famous founder of Binance. The complaint alleges that CZ allowed certain U.S. clients to circumvent restrictions on trading commodity derivatives.
In other words, CZ is accused of having deliberately circumvented the American law in order to satisfy some of his clients. Accusations that he describes as “unexpected and disappointing”. As a reminder, the CFTC is an American federal organization in charge of regulating the exchanges where commodities are traded.
The market’s fall in reaction to this announcement illustrates the sense of regulatory uncertainty hovering over the cryptocurrency market and particularly in the United States, where attacks on associated service providers are increasing. It also speaks to Binance’s monopoly in the cryptocurrency landscape today.
