The latest data coming in for Binance Coin (BNB) seems very concerning for the entire investment community. Binance Coin, which is the utility token of the largest cryptocurrency exchange by trading volume, Binance, is now experiencing a downtrend.
The Reason Behind BNB’s Price Depreciation
The recent downfall in the price of BNB has been experienced due to the media investigations and regulatory scrutiny that the exchange is facing. Just recently, the exchange has come under the spotlight for being investigated by the media sources as well as facing regulatory scrutiny.
Once again, the Binance exchange has found itself in a similar situation as it was back in April of 2021. The exchange is again under the microscope of the regulators and this time, media investigations are also gaining in on the exchange.
At the time of writing, BNB’s trading price is worth $282.7. The report shows that BNB’s price has experienced a 9.1% dip in the past 24 hours. The 7-day analysis of BNB shows that its price has dipped by 12.2%.
Compared to the all-time high of $686 in May of 2021, the price of BNB has dipped by almost 60%. Even though the entire cryptocurrency industry is moving in a negative direction, BNB is among the worst performers in the past 24 hours.
Binance Faces an Investigation for its 2017 ICO
The regulatory scrutiny comes against an allegation that has been made by the US regulators pertaining to Binance’s ICO from 2017. The regulatory authorities are investigating whether the ICO Binance hosted back in 2017 was under the regulatory jurisdictions or was in breach of them.
Now, after almost 5 years, the question is being raised whether Binance sold the digital tokens with the regulatory approval or not.
People aware of the investigation have confirmed it is the US SEC that is currently looking into the matter. They have even launched a probe in order to establish exactly what the status of the BNB token was at the time of the ICO.
At present, BNB token ranks as the fifth-largest cryptocurrency by market capitalization ($46.19 billion). Now, the question is whether the exchange had acquired the approval for the initial coin offering (ICO) or not.
Multiple Companies are Part of the Investigation
According to sources, the US regulatory authority has also expanded its investigations’ coverage over the companies that were linked with Binance. Many market-making companies are currently being investigated by the US SEC which happened to be linked with the exchange.
Given the current situation of BNB, it is highly likely that it’ll face a similar kind of downfall as Ripple (XRP). Investors must remain careful when investing in BNB as it can turn out to be a loss.
