BNB Faces 40% Discount As SEC Launches Investigation

The downside risk for BNB also comes from a recent Reuters pitch that claims Binance laundered “at least $2.35 billion in illicit funds.”

Binance coin (BNB) price drops when constantly being FUD

As mentioned in 2 previous articles of Coincu News, on June 6, after being accused by Reuters of Binance having illegal money laundering, on June 7, Binance faced an SEC investigation to suspect that Binance coin acted like security in 2017.

Binance Coin’s (BNB) price fell nearly 7.3% on June 7 to just under $275, its lowest level in three weeks.

Furthermore, the BNB price could drop another 25%-40% in 2022 as its parent company, Binance, faces accusations of violating securities rules and laundering billions of dollars of illicit funds for a criminal offense.

BNB was issued as part of an Initial Coin Offering (ICO) in 2017, raising $15 million for Binance.

The token primarily acts as a utility asset in the Binance ecosystem, allowing traders to earn a discount for their trading activities. At the same time, BNB also acts as a speculative financial asset, making it the fifth-largest cryptocurrency by market capitalization.

As a result, the US Securities and Exchange Commission (SEC) is investigating whether the ICO of the Binance token in 2017 was a securities sale that should have been registered with the regulator, according to Bloomberg sources.

This risks putting downward pressure on the BNB price, which has already lost more than half its value after peaking in May 2021 at around $700.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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