BNB Loses $300 Support Level Amidst News of the SEC Investigating Binance on its 2017 ICO 14

BNB Loses $300 Support Level Amidst News of the SEC Investigating Binance on its 2017 ICO

Key takeaways:

  • Binance Coin’s (BNB) price has been affected by news of the SEC investigating the exchange on its 2017 ICO.
  • Binance Coin has since lost its $300 support level and could retest its $218 low set during the crypto sell-off catalyzed by UST’s depegging event.
  • The investigations by the SEC aim to figure out if Binance broke Securities laws by selling its token to U.S residents.
  • Binance is also dealing with negative news that the exchange is a preferred destination for criminals who want to launder ill-gotten digital assets.

The number five digital asset, according to market capitalization, Binance Coin (BNB), has been hard-hit by news of an ongoing investigation into the crypto exchange by the SEC.

Binance Coin (BNB) Loses $300 Support.

According to a report by Bloomberg, the SEC is investigating claims that U.S residents purchased BNB during its 2017 ICO. This in turn has led to Binance Coin losing the crucial $300 support level as highlighted on the daily BNB/USDT chart below.

BNB Loses $300 Support Level Amidst News of the SEC Investigating Binance on its 2017 ICO 15

Also, from the chart, it can be observed that $300 is a crucial level for Binance Coin (BNB) dating back to February 2021. Additionally, Binance Coin (BNB) is in bear territory, trading below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages.

The daily MFI, MACD, and RSI also point toward a downtrend that could see Binance Coin (BNB) retesting the local low of $218 set in early May due to the crypto-wide sell-off catalyzed by USTs depegging.

More on the SEC Investigation on Binance.

Circling back at the possible SEC investigation into the 2017 ICO by Binance, the team at Bloomberg explained that the regulatory agency is examining whether a securities sale to U.S residents was carried out without registering with the agency.

The SEC has declined to comment on the matter. However, the team at Binance has stated that it would not be appropriate to comment on an ongoing conversation with regulators ‘which include education, assistance, and voluntary responses to information requests.’ The team also added that Binance would continue to meet all requirements requested by regulators.

Reuters Report on Money Laundering Through Binance Contributes to BNB Jitters.

To add to the SEC investigation, Binance is in the process of debunking money laundering FUD in the form of a Reuters article that claims the exchange is often used by criminals to launder ill-gotten digital assets.

Consequently, BNB’s short-term fate in the crypto markets could be shakey and possibly lead to lower values, as highlighted above.