Binance CEO CZ quits, Richard Teng to take over; crypto exchange to pay US$4 billion for money laundering

The cryptocurrency market experienced a shock today when Changpeng “CZ” Zhao, CEO of Binance, the world’s largest cryptocurrency exchange in terms of trading volume, resigned from his position. This decision follows a settlement with the U.S. Department of Justice (DOJ) regarding allegations that Binance facilitated the financing of Hamas.

Following this announcement, Binance Coin (BNB), the native cryptocurrency of the Binance platform, saw its price drop sharply to $239, with a market capitalization falling to $36.4 billion.

Zhao’s departure triggered a significant reaction in the crypto market, with the daily trading volume of Binance Coin dropping by 11.2% to $389.5 million on Tuesday. Analysts have performed a technical analysis on BNB and suggest there could be an additional drop of about 12%.

Such a drop would breach the support level at $234.6 and potentially push prices towards the lower limit of its symmetrical triangle, near $200 on the weekly chart. This level has always been a strong support zone in which buyers have stepped in to push up prices.

To fill the leadership void left by Zhao, Richard Teng has been appointed as the new CEO. As Binance serves a vast user base of 150 million and manages a considerable workforce, Teng’s expertise will be crucial in maintaining trust and stability within the organization.

Following the announcement of Zhao’s resignation, Coinglass reported that $3 million of long positions on BNB were quickly liquidated.

In addition, the perpetual funding rate has significantly decreased, moving from 0.025% to 0.0093%, indicating that market players might be preparing for further price drops and liquidity relative to the spot price index.

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The market is now closely watching how Teng will navigate this tumultuous period for Binance. His actions could either mitigate bearish sentiments, help stabilize the market value of BNB, or fail to reassure investors, which could result in additional downward pressure on the cryptocurrency’s price.

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