Crypto analysts worry about BNB’s US exchange listing failure. The BNB token, which currently has a market cap of approximately $40 billion. Has been unsuccessful in gaining a listing on major crypto exchanges in the United States. With the exception of Binance. Binance is the one exception. Analysts of cryptocurrencies in the United States speculate. That this might be because there is a chance that government agencies in the United States. Will classify BNB as a security in the near future.
In recent weeks, the world’s largest cryptocurrency exchange by trading volume. Has been the focus of speculation in the cryptocurrency market. This has occurred after blockchain watchers discovered billions of dollars of deposit outflows. The company’s auditor resigned, and reports emerged that the company might be the subject of an investigation. By authorities in the United States. According to the volume of trades conducted, Binance is the most prominent cryptocurrency exchange.
As can seen in the following chart, the recent downward trend for Binance’s in-house token. Known as BNB, is a clear reflection of such concerns. To reach $245, the price has experienced a decline of approximately 17% this month. Significantly underperforming the broad CoinDesk Market Index of digital assets, which has decreased by 5.7%. According to the information provided by CoinMarketCap. The most BNB was ever traded for during the month of May 2021 was priced at $690 at its all-time high. This same market capitalization of the token has dropped to around $40 billion. Since it hit a record high of $116 billion earlier in the preceding year at one point.
Binance’s susceptibility to a confidence crisis is the main concern
Concerns have raised regarding whether or not the collapse of Sam Bankman-FTX Fried’s exchange in November. Which occurred in an astonishingly short amount of time. Is an accurate model for what might occur to the cryptocurrency exchange Binance. Additionally, it is impossible to ignore the fact that the very first signs of severe distress at FTX emerged. When the value of that exchange’s very own FTT token began to begin a downward trend. This is a fact that cannot be ignored.
As a consequence of this, cryptocurrency analysts are focusing their attention. On the valuation of the BNB token while simultaneously. Examining the trajectory of the FTT token for any red or yellow flags that. In hindsight, could have alerted investors to the volatility of the market. Specifically, they are looking for any signs that the market may be about to experience a significant shift. There is a significant similarity between the two that can drawn. BNB is missing from a significant number of exchanges in that country. Much in the same way that FTX’s FTT token largely failed to get listed on major cryptocurrency exchanges in the United States. (If you interested, you can look for it on the Binance.US exchange.)
Crypto analysts believe major U.S. exchanges avoided listing BNB
Some crypto analysts hypothesize that major U.S. exchanges may have refrained from listing BNB. Due to the fear that doing so would put them in conflict. With the authorities who tasked with regulating the cryptocurrency industry. Those who have the token in their possession are subject to potential danger. If there are any regulatory issues that come up in the future.
Lucas Outumuro, the head of research at IntoTheBlock. Stated in an interview with CoinDesk . That “Exchanges probably do not list BNB as they see it as a security given the centralization of their network.” It is highly unlikely that it would be profitable for U.S. exchanges to take the risk of listing a security. Especially if the security in question is a competitor’s token.
FTT gets designated as a security
The United States Securities and Exchange Commission categorized FTX’s FTT token. As a security in response to a complaint that it had received this past week. Which brought this risk to light.
As an illustration of how the token could possibly intended to used as an investment. The document made a reference to the “buy-and-burn” program that currently being run by FTT. This program is currently being run by FTT. One analogy that comes to mind is the stock buyback. In which a company purchases its own shares on the open market. Throughout order to reduce the total number of shares of Crypto analysts that are outstanding and. As a result, increase the value of those shares. Another analogy that comes to mind is the repurchase of debt by a government.
Binance also Offers a Burn Program
In addition, Binance offers a burn program under the moniker “BNB Burn,”. Which was introduced in the second half of the year 2021. On the website of the company, which most recently updated on October 13th. A comprehensive explanation of the program can found.
“BNB is a deflationary currency, which means that it maintains a stable value. By burning its tokens throughout the year,” it says on the website. “BNB tokens burned throughout the year.” Prices across the board are lower in deflationary economies, as compared to inflationary ones.
According to Sean Farrell, head of digital asset strategy at Fundstrat. BNB “could deemed a security by regulators,”. And as a result, the cryptocurrency probably not listed on the majority of domestic exchanges. One of the reasons why BNB is not on the list is because of this.
CoinDesk contacted Binance for a comment regarding the lack of listings. For BNB tokens on major U.S. exchanges other than Binance.
US, as well as information regarding whether or not executives at the company. Were concerned that the token might be regarded as a security. This information also requested. There had been no response as of the time the press done with its work. The representative mentioned in a previous conversation that BNB listed on several major cryptocurrency exchanges. Located in countries other than the United States of America. These exchanges are located in other countries than the United States of America.
What the exchanges say
On the Binance website, the cryptocurrency coin known as BNB. It referred to as “the cryptocurrency coin that powers the BNB Chain ecosystem.”
The website states that “Not only can you trade BNB just like any other cryptocurrency. But you can also use BNB in a wide range of applications and use cases.” (You can trade BNB just like any other cryptocurrency). This statement alludes to the fact that Binance Coin (BNB). It currently regarded as one of the most widely used utility tokens all over the world.
As far as the utility of the token concerned, the website states that BNB can be utilized. “To pay for goods and services, settle transaction fees on Binance Smart Chain. Participate in exclusive token sales, and more.” There a yellow button with the words “Buy BNB Now” written on it. That can found at the very bottom of the webpage. When you click on that link, you will brought to a new web page. Where you will have the option to either sign in to your existing Binance account or create a brand new one to Crypto analysts.
According to CoinGecko, a website that provides pricing information for markets of digital assets. BNB listed on tens of cryptocurrency exchanges. Some of these exchanges include KuCoin, Huobi, and OKX.
Kraken is a cryptocurrency exchange that operates out of the United States and lists over 120 different tokens. However, the exchange does not make Binance Coin available to its customers.