CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
Binance Coin (BNB) Has Had Poor Performance Lately, With The Exchange Suffering Several Setbacks - We Provide An Overview And Insights
Binance exchange, for over a year, has been widely regarded as the most active crypto/crypto exchange globally (meaning they do not accept fiat deposits). Since late June, BNB market cap has fallen from USD 5.5B to as low as less than USD 3B, marking the worst period of absolute performance since inception for the coin. The move has coincided with several difficult moments for the exchange. First, the platform suffered a hack of USD ~40M worth of BTC. The exchange covered the losses and the story was seen to have concluded until it was apparent that a data hack accompanied the BTC hack. That story is ongoing and the hacker, who has engaged with crypto-focused media, claims to have additional files they are prepared to release. Furthermore, the exchange, like others, was recently forced to ring-fence US operations and relaunch their platform from scratch with Binance US.
Crypto Takeaway: In addition to the above headlines, existential factors have recently emerged to challenge the exchange. The company's DEX, which will ultimately serve as the going concern use-case for BNB, has managed to attract little liquidity. Furthermore, in their attempt to expand product lines, Binance has been accused by BitMEX executives of copying documentation and processes. The company has been riding high given their epic rise in exchange market share from their launch in 2018. In not offering a crypto/fiat onramp (with few exceptions), the exchange was able to avoid the most common problems in the industry that usually fall out of traditional banking. That said, holding a leading market position for over a year comes with its own slate of issues and BNB prices have begun to reflect those challenges.