Binance BNB Sheds Over $10 Billion This Month Amid Regulatory Pressure

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NGN Trading Halted on Binance
  • BNB has suffered a significant setback, losing $10 billion in market value.
  • SEC filed a lawsuit against the exchange, alleging it offered an unregistered security.
  • BNB’s market value currently stands at $37 billion, down from a peak of $110 billion.

In a recent development, Binance’s native crypto, BNB, has encountered a series of setbacks, shedding a staggering $10 billion market share since June 5. This steep decline can be attributed to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance, accusing the exchange of offering an unregistered security.

Unfortunately, the regulatory troubles do not end in the United States. Belgium, the Netherlands, and France have also posed challenges for the exchange, compounding the pressures faced by BNB. As a result, the token’s value has further dwindled, leaving investors and market participants concerned about its prospects.

Currently, BNB boasts a market value of $37 billion, down from over $47 billion on June 4, the day before the U.S. SEC filed a civil action against Binance. Like a stock-like asset, BNB value is closely tied to the performance of Binance’s trading platform and the broader ecosystem.

BNB experienced a meteoric rise alongside Binance.com’s trading volume, surging approximately 1,300% in 2021 and reaching a peak of around $675 per token, amounting to a staggering $110 billion market value.

Notably, Binance incentivizes customers to utilize BNB by offering discounts on crypto purchases made with BNB. Notably, BNB tokens comprise roughly 5.2% of the over $55 billion in customer assets held at Binance. Additionally, BNB serves as the native currency of BNB Chain, a blockchain initiated by Binance. The exchange also employs BNB for employee compensation, including salaries and bonuses, as disclosed in SEC filings.

Binance’s global market share has dropped from 64% to 56% since the beginning of the year. At the same time, trading volumes on Binance.US, its American affiliate, have experienced a rapid collapse, as Coin Edition recently reported.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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