Binance Coin (BNB) Faces Strong Headwinds Amid Crypto Crash

According to a recent market analyst report, Binance Coin (BNB) has experienced significant turmoil in the cryptocurrency markets. According to CryptoBusy, the coin saw a 13% drawdown after breaking down from a critical support level, coinciding with a market crash that swept through the industry last week. 

$BNB experienced a -13% drawdown after breaking down from this key support level, coinciding with last week’s market crash.

What should #Binance do for $BNB to recover? https://t.co/TZ6dj6Sa5Z pic.twitter.com/dnLndpjOki

— CryptoBusy (@CryptoBusy) August 21, 2023

As the future of BNB hangs in the balance, the analyst wonders what steps Binance could take to enable its native asset to recover.

US SEC Case Weighs Heavily on BNB Price

Following the announcement of the SEC’s case against Binance on June 5, BNB’s price went into a tailspin, shedding more than 30% of its value over the past year. The central entity behind the BNB token and BNB Chain development, Binance, is accused by the SEC of controlling and benefiting from unregistered security. 

The digital asset exchange, led by Changpeng Zhao (CZ), a self-proclaimed “holder of BNB and BTC,” has seen the price of BNB adversely affected by the negative news and the broader market crash. BNB, currently trading at $210.0, is sitting in the fourth position by market cap with $32 billion, per CoinMarketCap, registering 13% losses in the last week and 14% in the past 30 days.

Customer Concerns Over Binance’s Service Disruptions

Adding to Binance’s woes, several users have recently reported on X (formerly known as Twitter) that they could not withdraw or deposit euros (EUR) from and to the cryptocurrency exchange platform. Binance’s customer support responded that the direct bank transfer for EUR was under maintenance and temporarily suspended. 

Hello there,

Please be informed that currently, direct bank transfer for EUR currency is in maintenance. However, you still can try to use card deposit/withdrawal from here: https://t.co/EDd2bXuELY

Also, you can try our “buy crypto with card” option from here:…

— Binance Customer Support (@BinanceHelpDesk) August 21, 2023

However, no timeline was provided for when this service would be restored. As an alternative, the support account advised users to use card deposits or withdrawals or explore other options such as credit card purchases or the peer-to-peer (P2P) platform.

Binance has not released official updates or statements, and the BNB token continues trading at yearly lows. The concerns regarding Binance’s financial health and the regulatory headwinds are placing additional pressure on the digital asset exchange and its native coin.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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