Altcoins
Binance: Here’s how BNB reacted to CZ’s guilty plea
Binance went through some difficult past few months and its token, BNB, has also had a rocky trend.
- Judge accepted CZ’s guilty plea for Bank Secrecy Act violations.
- BNB funding rate remained positive.
The Binance [BNB] controversy continues, and there has been a recent update involving its former CEO Chanpeng Zhao.
Guilty plea accepted
Numerous reports and a recently reviewed court document confirm that the former CEO of Binance, Chanpeng Zhao, has had his guilty plea accepted.
In a filing dated 6th December to a Seattle District Court, Judge Richard Jones acknowledged Zhao’s guilty plea related to one count of Bank Secrecy Act violations.
Source: Pacer
The plea was submitted several weeks ago, coinciding with Binance’s $4.3 billion settlement with U.S. agencies. This also led to Zhao stepping down as CEO and agreeing to pay $150 million to regulators as part of the settlement terms.
Also, sentencing is set for the 23rd of February, 2024. While Zhao has been released on bond pending sentencing, prosecutors seek to enforce his presence in the U.S. until the sentencing date.
The previous revelation about Zhao and Binance triggered a significant decline in the value of BNB.
Reaction from the Binance Coin?
Upon initial examination of the daily timeframe chart for Binance Coin (BNB), there appears to be no significant reaction.
In contrast to the 10.8% decline witnessed around 21st November, the current trajectory looked like a standard market trend.
As of the close of trading on 6th December, BNB declined by less than 1%, settling at around $229. At the time of this writing, it showed a modest increase of over 1%, trading at around $232.
Source: TradingView
Although it has yet to recover the $250 price range, BNB has consistently held within the $200 price range.
The observed trend suggests that the recent development has not substantially impacted the price trajectory. However, the potential impact of the sentencing hearing on the flow of BNB remains uncertain.
Binane traders stay optimistic
A Binance BNB funding rate review on Coinglass showed a prevailing positive sentiment towards the asset.
The funding rate has consistently maintained a positive trend, reaching one of its highest points in recent months at 0.04%. As of this writing, it was around 0.01%.
Read Binance Coin (BNB) Price Prediction 2023-24
The sustained positive state and trend of the funding rate suggest that traders hold an optimistic outlook, believing that the price of BNB may continue to rise.
This sentiment may stem from the expectation that BNB will recover the price range it had before the developments related to Zhao.
