BNB Price Drops by 8% Following SEC Probe on Its ICO Token Sale
2022.06.07 17:01
BNB Price Drops by 8% Following SEC Probe on Its ICO Token Sale
- BNB price plunged allegedly after an SEC investigation on its token sale.
- SEC is probing whether Binance broke the law while BNB held a sale of securities in 2017.
- Currently, the price of BNB is $282.94.
The price value of the BNB coin of Binance indicates a red signal intraday as the US Securities and Exchange Commission (SEC) is investigating Binance Holding Ltd.
In detail, the SEC is probing whether Binance breached its law while selling BNB tokens in its Initial Coin Offering (ICO) in 2017. Bloomberg report states that the investigation is scrutinizing the origins of the company and its BNB token. The SEC team is inspecting if this ICO amounted to the sale of a security that should have been registered with the commission.
BNB/USDT- 1-day Trading Chart (Source: Trading View)
While diving into the price crash of BNB, the coin has dropped over 8.7% in the past 24 hours, and 10.6% in the past seven days. According to CoinMarketCap, BNB is currently registered at $282.94. Notably, the global crypto market is already marching down by 5.4%, where BTC has again reached $29,000, while ETH is dipped by 6.9% with a price of $1,758.7. Significantly, the current price is more close to its support level of $265. If BNB moves beyond this level, the price might again crash.
But BNB should at least break its $338 resistance level to expect a bearish trend. If this happens, the coin is anticipated to reach its $413 price on May 5, which is also a high price, considering the global market plunge.
Apart from the probe on BNB, there is another well-known case Ripple vs SEC investigation. Wherein the regulatory team alleged that Ripple Labs had been selling XRP tokens without obliging to securities rules. More so, DeFi token Uniswap was also under SEC probe recently.
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