Binance Coin (BNB) Is Down 10% on Bad News Spree, But It Might Fall Even More

[Myntist.official]

On June 6, the crypto world was stunned by the news of the state of affairs of one of the world's largest crypto exchanges, Binance. First, Reuters published an investigation regarding the laundering of $2.35 billion in cryptocurrency through Binance from 2017 to 2021. The news outlet used court records, law enforcement statements and information from the blockchain itself in its investigation.

Binance officials responded that they do not believe the calculations were accurate and refused to provide their own data. Quotes of Binance Coin (BNB), the native token of the exchange and its BSC network, reacted with a slight drop of 4%.

Then, later that day, the U.S. Securities and Exchange Commission said it was initiating an investigation into Binance. The inquiry was opened to see if the exchange had violated securities law when BNB was first sold in 2017. Following this news, BNB fell even lower, by 8.5%. The token is currently quoted at $275, down $37 from yesterday.

What could be worst case scenario FOR BNB coin ?

[Yaunfitda]

Not just Binance, any exchange or token back up by anyone should suffer from a bad news, and this could be the worst, specially coming from US SEC. So it is expected that it will go down and now that we are in a bear market, it will just magnified. So we will see how will they cooperate with authorities, if they think that they don't have anything to hide or shield then good. But as I have said, we are in a bear market so even without this bad news, the price will simply go down. And the thing is, it brings down the rest of the market, like BTC when it's having a good run to $31k++ and now down at $29,xxx again.

[btc_angela]

What could be worst case scenario FOR BNB coin ?

Worst case scenario is:

1. US Sec find them guilty and maybe have them paid in millions or billions as restitution
2. BNB going down to 2 digits again
3. Investors losing trust on them, hence, might have a difficult time recovering because of the problems they are now facing.

But according to the spokesman, they are going to comply with the new regulations and willing to assist law enforcement and US regulators.

[tbct_mt2]

It takes 5 years to try to investigate about it, so think of this news?

Is it real or just another fud? Personally, it is another fud from market markers in order to dump crypto market, Bitcoin and BNB. They have tried to release many fuds, from FED to SEC, mining to crowdfunding, etc.

Time passes and we will have another period after this fud period. Stay strong and keep holding your Bitcoin and BNB.

[bittick]

What could be worst case scenario FOR BNB coin ?

So far binance is still quite strong despite from the bad news that already attacked it. SEC was not even making sense for now. It needs years to investigate this. How about privacy token? is SEC giving up with it? binance was the largest exchange site.
SEC didn't even know which was the truth but it was only aiming for the token that can be categorized as security token.
I don't even believe with this news. The news can be manipulated easily.

[pawanjain]

That is indeed a very bad news. A similar situation to Mt.Gox might occur if things are not sorted out soon.
If things get worse then BNB coin might collapse just like LUNA and this will definitely affect all the other coins including bitcoin.
Binance is a huge crypto exchange through out the globe and if something bad happens with it then it might create a havoc in the crypto community.
A blood bath is inevitable if Binance doesn't get away with this soon.

[Iadegbola34]

A finding that the BNB is a security could put Binance in a similar position as Ripple Labs Inc., which is locked in a bitter court battle with the SEC after the regulator sued the firm and two of its executives in December 2020 for allegedly breaking rules in selling a crypto token known as XRP. Ripple argues the token functions as a medium of exchange for virtual currency rather than a security, and that the SEC’s legal theory is flawed.

I fear the worst if Binance is convicted of the allegations. The market will react even more negatively to the news. Given, we're already in a bear market.