Changpeng “CZ” Zhao stands as the CEO of Binance, and announced to the crypto space at large that the exchange will enact its 15th burn of BNB coins, declaring it will happen in around a month or so.
CZ revealed this answer when a query was made about the matter on Twitter as to when the next BNB burn will be, and CZ saw it fit to respond.
In about a month or so
— CZ 🔶 Binance (@cz_binance) March 13, 2021
Now, here’s where things get interesting. It’s common knowledge that burning a cryptocurrency’s supply, lessening the total possible cryptocurrencies in order to try and drive up demand, is a move people do to ensure price power. It just so happened that Binance’s BNB tokens had found itself taking a dive by the factor of 14%, going down from $288 to $247.
The reason for this is the fact that Binance has gone under investigation by the CFTC. In short, the government watchdog is trying to determine whether or not they intentionally allowed US citizens to take part in the global crypto exchange.
Some Facts May Have Been Exaggerated
Now, it should be noted that the CFTC has yet to file an official claim of wrongdoing against Binance. Major news outlets, as they always did, took that snippet of news, that the CFTC is investigating Binance, and ran with it full steam ahead.
Now, that doesn’t mean Binance is in the clear altogether, it’s still got an investigation going on by the CFTC, but it’s not been accused of anything.
At the time of writing, the Binance Coin is trading hands at around $279, showing that the price crash has recovered, for the most part.
BNB TOken Seeing Massive Growth
Back in March of last year, when the COVID-19 pandemic really started to hit the world and was officially declared a pandemic, the coin’s price dropped as low as $6.40 on the 12th of March, 2020. Crunching the numbers of that and today’s price, it’s clear that Binance has been doing very good for itself, trading at over 41 times the price of that crushing low.
The fact that Binance is being investigated by the CFTC isn’t all that surprising. It’s been an ongoing issue with the exchange to keep the US investors out of the main exchange and within Binance.US, its US-based arm. However, there’s just so much more to work with within Binance’s global platform, and US-based investors are quite keen on it.
Binance would, hypothetically speaking, gain a lot by having the US investors sneak on to its global platform. The motivation is there, and you could, hypothetically speaking, of course, make the ability to bypass the cordon too easy by intent. However, nothing has been proven. It’s the CFTC’s job to find any misconduct, assuming there was, to begin with.