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The crypto market has been dealing with a lot lately with the untimely collapse of FTX, one of the largest crypto exchanges. This came as a shock to the entire crypto fraternity, who now are losing faith in this industry, given the recent developments. Traders and investors are now looking for better alternatives, and BNB seems to be their first choice. This article will cover a BNB price prediction and its potential move.
BNB is the native token of the world’s largest crypto exchange Binance. The prices of this token have been increasing lately despite the bearish sentiment in the market. BNB is now just below $275, and many expect it to rally above $280. But will it reach the $280 mark again? Continue reading to get a better understanding.
Recent Developments In The Crypto Industry
It is no secret that 2022 has not been a great year for the crypto industry. The market has been dealing with a bearish sentiment ever since the Russian invasion of Ukraine in late February 2022. Besides that, the US Feds increasing their interest rates did not do any good to the industry.
While all of this was happening in the market, a report from CoinDesk, a crypto publishing firm, shocked the crypto world. The report showed a leaked balance sheet of Alameda Research, the sister company of FTX. The said balance sheet made it evident that Alameda was heavily reliant on FTT tokens, FTX’s native currency. This highlighted some grave liquidity concerns with Alameda Research and FTX, given both companies were taking many loans against these assets.
Soon after this revelation, Binance announced that it would be liquidating all its FTT holdings. This was an important development since Binance was one of the most significant investors in FTX. Hence, this news did not bode well with traders and investors, who instantly panicked to secure their assets.
People started withdrawing their assets from the FTX exchange on a massive scale following Binance’s announcement. Even FTX did not deal well with this crisis, with them closing all withdrawal processing requests in the exchange. Besides that, there was no formal announcement from FTX to justify this move which only aggravated stakeholders more.
This continued until another announcement came from Binance, citing that it would be acquiring FTX. The CEOs of both platforms took it to the microblogging website Twitter to make the announcement and echo each other’s sentiments. They stated that Binance would help out FTX and its investors amidst this liquidity crunch, and investors were relieved for a while.
Did The Binance And FTX Deal Materialize?
Unfortunately, no. While the crypto industry was comforted that Binance would acquire FTX and save the exchange for good, another development showed the deal fell apart.
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
Binance made another announcement citing that there are some grievous concerns in FTX’s books and there is nothing they could do to help the exchange. Many officials from Binance even went on to describe FTX’s books as a black hole where things only got worse. They further added that these damages were beyond repair and there was nothing they could do to help out the exchange.
What Happened Next?
Following this announcement, many things were happening with the FTX crypto exchange. Several investigations were launched to decipher what exactly went wrong with the exchange. Some reports showed that FTX’s CEO, Sam Bankman Fried transferred $10 billion worth of funds from FTX’s customer deposits to Alameda Research.
What’s even more surprising is that FTX was at the mercy of a few top officials in the organization who were running the entire ruckus. All these top officials were well aware that Mr Bankman Fried had transferred this fund to Alameda Research.
However, none of them took the responsibility to prevent this or take any measures to mitigate the damage. Instead, all these officials from both FTX and Alameda were living in a lavish penthouse while all this was taking place.
FTX CEO Sam Bankman Fried has filed for bankruptcy after failing to garner $8 billion from investors. This amount is just what FTX needs to process all the pending withdrawal processing that came forward in the recent revelations. This has taught the crypto industry a good lesson that no crypto exchange or company is too big to collapse.
Binance’s Move
As these events unfolded, Binance came up with an innovative idea of an industry recovery fund. This fund is designed to help out successful crypto projects that run into issues with their liquidity. Binance’s CEO Changpeng Zhao made this announcement on Twitter, citing that other players in the industry will be a part of this fund.
He stated that this fund would help out any reliable crypto project that runs into liquidity issues. This came as a much-welcomed move since crypto projects running into liquidity issues are nothing new in this sector. Besides Binance, other prominent players in the industry, like Huobi Global and more, will also be a contributor to this fund.
The best thing is that crypto projects first need the approval to qualify for this fund. This means any crypto project such as FTX using dubious methods to win over customers will be weeded out during the screening process.
Binance (BNB) Price Prediction – Technical Analysis
Binance seems to be the only promising crypto in the industry after Bitcoin (BTC). Given the recent developments, the token is now nearing a resistance level of $280. Besides that, the technical indicator Relative Strength Index is now below the 50 level, with the signal line pointing to the east.
But one must not undermine the fact that the impact of Western sanctions on Russia is still unfolding its impact. The world is also dealing with an energy shortage, with Russia using its energy to overpower the Western world. Furthermore, the results of the US midterm elections ended up in favor of the Democrats. Given these developments in the world, Binance might be in for some good news soon.
As long as traders and investors in the crypto world can rely on Binance, the coin might soon reach the $280 mark. Of course, this is not as good as the valuation of Bitcoin, which has been in the market since the inception of the crypto industry. But Binance is still showing some promising indicators, given the bearish sentiment in the market.
Bottom Line
There is no denying that the crypto industry is one of the most volatile, as anything can change at any time. The collapse of FTX has taught the industry many new lessons that it needs to strengthen its policies to safeguard the stakeholder’s interests. The way things are unfolding, it is safe to say that the industry will recover from this damage and perform better in the coming days and months.
This becomes more evident when investors see that projects like Dash2Trade have managed to raise a total of $6.3 million with its pre-sales. Besides D2T, TARO is also doing great, with RobotEra raising a total hard capital worth $6,930,000 as of now. Further good news is that IMPT and Calvaria are doing an excellent job of driving better innovation in the play to earn an area of the industry. So given these developments, it is safe for investors to put their faith in the crypto industry despite the recent development with FTX.
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