As the crypto industry continues to evolve, Binance.US is facing a critical challenge that could impact the future of the Binance Coin (BNB). The prominent American subsidiary of Binance Exchange is currently in search of a reliable banking partner, leading to growing concerns among BNB investors about potential price drops.
With a bearish sentiment looming, the exchange’s operational hurdles have become a hot topic of discussion within the crypto community. But what does this mean for the future of Binance.US and BNB? Keep reading to find out.
The Wall Street Journal revealed on April 8 that Binance.US has faced considerable challenges in finding a banking partner to manage its clients’ funds. This comes after the recent collapse of Silvergate and Signature Bank, forcing the exchange to rely on intermediary banks to store funds on its behalf. The situation has directly impacted Binance.US customers, with the company announcing plans to transition to new banking and payment service providers in the upcoming weeks. However, this change is expected to temporarily disrupt some U.S. dollar deposit services.
In the interim, Binance.US has enlisted the services of Prime Trust LLC, a FinTech firm specializing in cryptocurrency services. The company stores funds received from Binance.US clients within its network of banking partners. Despite the temporary fix, Binance.US continues to search for a direct banking partner amidst a complicated regulatory landscape and legal action against its global affiliate, Binance Holdings Ltd., by the Commodity Futures Trading Commission.
BNB Price Experiences Pressure
BNB has faced headwinds over the past few weeks, trading at around $310 with a minor loss of less than 1%. Despite trading above its short and long Moving Averages, a continuation of the decline could push it below these averages. The bearish trend is further indicated by the Relative Strength Index (RSI) line. According to funding rates data from Coinglass, short positions dominate most exchanges, suggesting that investors are pessimistic about BNB’s future performance.
As Binance.US continues its pursuit of a banking partner, the exchange’s operational challenges have left investors uneasy, with a noticeable bearish sentiment surrounding BNB. The crypto community will closely monitor the exchange’s progress and the impact on Binance Coin’s market performance.
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