Binance US To Go Public: What Does That Mean For BNB?
CZ said Binance US is likely to go public in the next 3 years.
Covered:
- Binance Affiiliate Going Public
- Binance’s Regulatory Issues
- BNB’S Rise And Fall And Rise Again
Binance US Going Public
Binance CEO Changpeng Zhao
During an interview with The Information, CEO of Binance Changpeng Zhao (A.K.A. CZ) announced that their affiliate Binance US will go public within the next three years. In addition, CZ told Hannah Miller, journalist for The Information, that their affiliate is within months of closing another funding round for the affiliate.
“Binance.US is just going to do what Coinbase did,” CZ told Miller.
The announcement comes about a month after Brian Brooks’ abrupt departure from the US exchange. A recent New York Times piece pointed to a failed funding round as the reason for Brooks’ brief 3 month tenure. About a month before leaving, Brooks also stated that his now former employer is likely to go public within the next four years.
Binance’s plans differ from its affiliate. After Coinbase went public via direct offering in April, CZ said that he had no plans to go public.
“We’re not really short on funds. We’re surviving OK and we’re growing very healthily and organically so we don’t have any plans for an IPO,” CZ told Coindesk.
Since April, the world’s biggest crypto exchange has faced an onslaught of regulatory issues. CZ hasn’t hinted if his comfort level has changed regarding available funds and growth. But Binance did recently get bought out of its shares in FTX and still is by far the largest exchange worldwide in terms of volume.
Binance 24 hour volume compared to its competitors. Credit: CoinMarketCap.com
Though, Binance’s American offshoot is far behind Coinbase in the US. The affiliate’s 24 hour volume is only a 5th of its already publicly listed competitor.
US Crypto exchange volume. Credit: Coingecko.com
Binance’s exchange coin BNB is up 3% in the last 24 hours on the news, trading in the $490 range.
Binance’s Regulatory Issues
The move is intended to further distance Binance’s affiliate from Binance. Binance has faced intense scrutiny since the May 19th crash. A number of countries have banned or are moving to ban the exchange. The reasons vary from derivatives trading, KYC, and tokenization of stocks.
Binance has responded by decreasing max leverage, increasing KYC, and removing tokenized stocks, but those actions don’t appear to be currying favour with regulators.
As well, CZ said in the past that, “I actually believe we have the strongest KYC (know your customer), AML (anti-money laundering) and geofencing technologies in place.”
BNB’S Rise And Fall And Rise Again
Recommended: For more on BNB coin, check out our guide.
The intense regulatory scrutiny on Binance coincided with Binance’s BNB coin’s recent struggles.
BNB, which is available on Binance and its US affiliate, is used to pay transaction fees and for discounts on trading. For example, holding the coin gives Binance users 25 percent of margin trading.
BNB started 2021 hovering in the $31 USD range, before climbing to its all-time high of $690 back in May. BNB fell as low as $225 after the May 19th crash. It’s currently trading in the $490 range, which is up 48 percent in the past month, but still far below its May all-time high.
BNB is still up a massive 1,899% in the past year. And overall, BNB returned over 400,000% for its earliest investors.
Though, it remains to be seen if BNB can get back to its all-time high, considering the neverending onslaught of Binance FUD. But, considering the amount of volume Binance sees on a daily basis, and a heating up market, it’s a good bet all the volume heading to Binance will spill into their exchange coin.
The post Binance US To Go Public: What Does That Mean For BNB? appeared first on CryptosRus.
Text source: CryptosRus
