The fight between altcoins for third place in the rating by capitalization intensified. The rapidly rising Cardano (ADA) may not hold third place in terms of capitalization and will give it to Binance Coin (BNB).
The native token of the crypto exchange Binance unexpectedly soared in the first half of the year, then dropped just as quickly. But now BNB is ready to renew its all-time high (ATH) at $690.9, which was set in May. Binance Coin (BNB) is dropping under the influence of fundamental factors, the main one of which is attacks on the exchange made by regulators of several countries. Binance is under pressure from the US and UK authorities, as well as Korean, Malaysian regulators, and others.
In early August, the exchange announced that it no longer provides trading in pairs with the local currencies of Korea (KWN) and Malaysia (MYR), as well as with the Australian dollar (AUD), euro (EUR), and pound (GBP). Earlier trading in crypto derivatives in Europe was suspended under pressure from European authorities. Plus, the authorities in Thailand, Singapore, and the Cayman Islands have launched investigations into Binance, suspecting it of money laundering. As a result, the BNB token tested local lows several times in the $240- $260 range.
In addition, traders and investors accuse Binance of market manipulation and the inability to provide trades under heavy load. Traders from Europe, the United States, and Australia have even filed a $20 million lawsuit over the case. Players suffered losses as a result of the forced closure of positions during the market crash in May. Investors also complained earlier about Binance’s inability to ensure fair participation of everybody in funding startups that were launched in IEO format on the exchange launchpad.
The accusations of market manipulation are connected with the practice of tokens burning. Binance burns its tokens according to a pre-announced plan once a quarter until 100 million BNB is burned, which is half of all tokens in circulation. The sixteenth burning was recently carried out; about 1.3 million BNB worth almost $394 million burnt. This made BNB rise 90%, from $262 to almost $500 and this is the second so-called “accelerated burn”. Earlier this year, Binance CEO Changpeng Zhao announced:
– Over the last three and a half years, we have burned about 13% of the promised amount … It would take roughly 27 years to finish the burn. So, we thought it’s time we speed it up a bit. The current accelerated burn would put the trajectory to be around 5-8 years to finish the 100 million BNB.
Accelerated burning creates additional hype, this is market manipulation, according to some experts. Traders are ready to take this factor into account and predict the BNB all-time high will be renewed by the end of the third quarter. Popular cryptanalyst and trader Justin Bennett claims that BNB will go up through several resistance levels on its way to new highs, the closest of which is $530. If BNB holds above this resistance level, it will continue to rise at a rapid pace.