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This has been a very turbulent week for the crypto universe, with so many developments adding new dimensions to this sector. It all started with traders and investors smelling trouble in the FTX exchange and hence losing confidence in its native token, FTT. Then suddenly, Binance swooped into the picture and gave everything an entirely different spin altogether.
Most recently, the CEOs of both FTX and Binance have reached an agreement for the greater interest of crypto users. But what do all these developments mean for the Binance coin price that have been bearish until now? Continue reading to get a better idea about BNB’s prices in the future.
So How Come Binance Is Acquiring FTX?
If you are someone who keeps up with all that’s happening in the crypto world, certainly, you did not miss FTX’s CEO making headlines as a savior of the industry. Sam Bankman Fried, the CEO and founder of the FTX crypto exchange, was offering to buy failing crypto companies for the industry’s greater good.
What’s more, is that FTX.US recently even won an auction to buy the assets of a bankrupt crypto lender Voyager. Also, Bankman-Fried revealed in May this year that he has a 7.6 percent stake in Robinhood Markets, allowing him to capitalize on the weakened share price of the trading platform.
But the recent developments in the market depict that FTX might need to add its name to the list of failing crypto companies.
How? Well, it all started with a revelation from an article published by the well-established firm CoinDesk just a week earlier. The article revealed that the trading firm of Bankman-Fried, Almeda Research, relies heavily on the FTT, FTX’s native token. This raised several concerns with regard to the foundation of Bankman-Fried’s crypto empire.
Naturally, this raised many concerns among FTT holders, and investors became protective, further triggering a panic sale. This panic sale further gained momentum, with FTX stopping its withdrawal processing.
Furthermore, Binance swooped in to add fuel to the flame with an announcement stating that it would be liquidating all its FTT holdings. Consequently, this sent a massive shockwave throughout the crypto community, leaving everyone worried and confused.
These went on for a while until this week when Changpeng Zhao, popularly called CZ, the CEO of Binance, again took to Twitter to announce they are now buying FTX. The tweet read, ‘This afternoon, FTX asked for our help; furthermore. He added that Binance would help FTX get through this liquidity crunch.
Bankman-Fried soon followed suit by echoing the same sentiments. He tweeted, “Things have come full circle, and http://FTX.com’s first and last investors are the same: we have come to an agreement on a strategic transaction with Binance for http://FTX.com (pending DD, etc.).” He also assured that this decision was taken for the greater interest of users and the market as a whole.
Of course, a little more due diligence on Binance’s part is the need of the hour, as this can be a very significant undertaking. But in principle, the largest crypto exchange in terms of market cap is all set to get larger.
Following this news, the prices of the BNB token, Binance’s native token, started trading on a bullish trend, with its prices reaching new heights after quite some time. But this bullish run did not last long, and the prices have fallen. Even other major cryptocurrencies have lost a significant proportion of their valuation, with people losing confidence in the industry as a whole.
Update: A recent news state that Binance is no longer buying FTX.
Binance Coin Price Prediction: Technical Analysis
The crypto market has been sluggish since the start of this year. BNB had a valuation of $600 in November last year, but the prices fell to $371.37 on the 24th of January 2022. With Russia’s invasion of Ukraine on the 24th of February 2022, things deteriorated further, taking the prices to $361.23.
Things stayed more or less dormant for a while until the 12th of May 2022, when the de-pegging of the UST stablecoin triggered a mass sell-off. The prices of BNB reached a low of $216.36 on the 12th but moved up a bit to $336.67 on the 25th of the same month, only to fall again subsequently.
In June 2022, US Securities and Exchange Commission (SEC) began investigating Binance’s ICO in 2017. As per reports, the said ICO of BNB in 2017 was an unregistered security offering which again raised many eyebrows. All of these had an evident impact on the prices of BNB, triggering a further downfall until it reached a low of $186.22 the same month.
However, the prices recovered again in the following months reaching $257.19th in September 2022. Before the FTX takeover news hit the market on the 8th of November, BNB had a price tag of $388.72. But the prices collapsed again following the FTX announcement, with the current BNB standing at $285.22 for one BNB.
What Does This Mean For Traders And Investors?
For starters, if you are a user of FTX.US or Binance.US, you have no worries since nothing is changing for you. However, if you are an FTX.US user, moving your FTT holdings to an external token might be wise.
In the case of international FTX users, chances are your funds are safe as long as Binance goes through with the deal. But since there is no guarantee that the deal will go through, consider practicing caution.
Ultimately, keeping your assets in an exchange without any liquidity issues is safer, so moving your FTT holdings to an external wallet is not a bad idea. If anything, these developments have taught us, is that no crypto exchange is too big to collapse.
Of course, Binance’s commitment to buy FTX is a reasonable assurance but simply signing a letter of intent is just the beginning. There are many other nuances that Binance needs to address before going through with the deal. As the common slogan “Not your keys, not your crypto.” suggests, storing your crypto assets in a wallet you control is always better.
But if you’re looking for gains in this turbulent crypto market, look to invest in Dash 2 Trade. This token, which powers a next-generation crypto analytics and research platform, is on presale and is currently under the radar of many early movers.
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