- Summary:
- Binance Coin price has been under too much pressure in the past few weeks as concerns about the parent company continue.
Binance Coin price has been under too much pressure in the past few weeks as concerns about the parent company continue. These concerns accelerated following the collapse of FTX and FTT Token. It was trading at $262 on Friday, which was slightly above the year-to-date low of $253.
Binance FUD continues
The main catalyst for the BNB price this week was the Binance FUD. FUD stands for fear, uncertainty, and double. As the biggest exchange in the world, there is still a lot that we don’t know about Binance.
The biggest concern that has puzzled investors is the company’s lack of a headquarter. In several interviews, Changpeng Zhao has insisted that the company does not need a global headquarter. Instead, he said that it is a fully decentralized company, which explains why he has always been opposed to regulations.
The other main concern is the firm’s auditors. In its statement of reserves that was published last month, Binance said that the report was prepared by the South Africa’s branch of Mazars. Mazars is a mid-size accounting firm that is best known for representing the Trump Organization.
For a global company like Binance, more confidence would come if the firm was audited by a big 4 company. Further, the company’s statement of reserves only showed its bitcoin holdings alone and not liabilities
Outflows continue
All these challenges explain why outflows have continued in the past few months. Transparency data shows that Binance holds over $58.9 billion in assets in its platform. They have declined by more than $350 million in the past 24 hours and $5.4 billion in the past 7 days. In the past month, users have dumped assets worth over $5.5 billion.
The same has happened in Binance DeFi ecosystem. Its total value locked has fallen by more than 8% in the past 7 days and 12.1% in the past 30 days. While BNB powers the blockchain platform. Binance is its biggest holder, which presents risks.
Binance Coin price forecast
The 4H chart shows that the BNB price has been in a downward trend in the past few weeks. In this period, it has moved below all moving averages. It is approaching the important support level at $250. Oscillators have been in a downward trend in the past few weeks.
Therefore, the Binance Coin will likely continue falling as sellers target the next key support level at $200. A move above the resistance point at $280 will invalidate the bearish view.
