In just a few hours, Binance Coin (BNB), the token of the cryptocurrency exchange Binance, fell 15%.
Specifically, the current price of BNB per coin is 220 USD, down from 270 USD yesterday. This digital currency has occasionally topped 300 USD per coin in the previous week.
BNB’s price decline is likely attributable to FTX’s bankruptcy proceedings. The first outside investor in Sam Bankman-bitcoin Fried’s exchange is Binance. Binance collected $2.1 billion in FTT payments when it sold FTX shares last year (FTX token).
In an interview with CNBC on December 15, Binance CEO Changpeng Zhao (CZ) disputed that his business would recover the aforementioned funds following FTX’s bankruptcy filing because to fears that this sum was false.
Additionally, he said that Binance would be “financially OK” if the monies were removed.
This week, Binance faced a significant exodus of investors who feared it might become the “second FTX.” CZ announced on December 13 that customers of the exchange withdrew more than 1,100,000,000 USD in under 24 hours.
However, he emphasized that “this is not the greatest sum of money we manage” and that the company’s condition is steady. In the meantime, the blockchain analytics company Nansen reports that the total value departing Binance has now surpassed $3 billion.
“We passed this rigorous stress test by operating a very straightforward business model: custodial assets and transaction fees,” a Binance spokesman explained. However, this individual declined to remark on the price reduction of BNB.
According to CoinMarketCap, BNB, a coin issued by Binance since 2017, is the fifth most valuable cryptocurrency in the world with a market capitalization of $39 billion. Only Bitcoin, Ethereum, and two stablecoins, Tether (USDT) and USD Coin are superior to this asset (USDC).
Currently, the total quantity of BNB coins is 200 million, with 160 million in circulation. In June, the US government began monitoring the token, and the US Securities and Exchange Commission (SEC) investigated whether it was a security token.