BNB Enjoys First Surge After SEC “Security” Label Amid Binance Selling BTC Rumors

The rally comes amid rumors of Binance selling Bitcoin to prop up BNB’s price.

Woman jumping on candlesticks chart reaching for BNB token.
Created by Kornelija Poderskytė from DailyCoin
  • The SEC lawsuits against Binance and Coinbase sent altcoins spiraling downwards.
  • BNB has experienced its first rally since the SEC labeled it a security.
  • The rally comes amid rumors of Binance selling Bitcoin to prop up BNB’s price.

Amid increasingly bearish market conditions, altcoins have had it rough in the past week. The United States Securities and Exchange Commission notably caused panic in the market by labeling several of them, including BNB, unregistered securities in enforcement actions against Binance and Coinbase.

While most other assets have since experienced price bounces following the debacle that began early last week, BNB’s price has continued to drop. 

BNB Leads Market Gains

BNB, the native token of the Binance-created BNB Chain, in one instance, surged by over 6% in the last 24 hours, recording its first significant gains since the SEC labeled it a security.

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At the time of writing, it remains the highest gainer among the top 30 crypto assets by market cap, even though it has pared off its gains to about 4.53%, trading for $247.08. The asset is far from lows of about $221 at the beginning of Monday’s trading session.

BNB’s latest surge notably comes amid rumors that Binance has been selling Bitcoin (BTC) to buy back BNB in the secondary market and prop up the price. The alleged aim? To prevent a $200 million liquidation event in the BNB ecosystem that would happen should the price fall below $220.

Binance’s Chief Executive Officer Changpeng “CZ” Zhao has refuted these rumors.

On the Flipside

  • Several factors can influence the price of an asset, including supply and demand.
  • The SEC accused Binance of engaging in wash trading to prop up its valuation in its complaint filed on June 5.

Why This Matters

BNB is the native token of the most actively used chain in crypto and makes up 14.23% of Binance’s reserves per data from CoinMarketCap at the time of writing.

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Read this to learn more about the rumors of Binance selling Bitcoin to prop up the value of BNB:

More Binance FUD? CZ Denies Rumors of Selling Bitcoin for BNB

Find out what happened when Binance and the SEC faced off in court:

SEC vs. Binance Hearing Rundown: Asset Freeze, Compromise, Regulation by Enforcement

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.