- Binance’s BNB token failed to be listed on crypto exchanges.
- Exchanges view BNB as a security due to Binance’s centralized model.
- Analysts are studying the drop in BNB’s value comparing it to FTT’s price drop prior to the FTX bankruptcy.
Binance’s BNB token has a market capitalization worth $40 billion, yet, the leading crypto exchange has failed to list it on the major US crypto exchanges. According to analysts, US regulators consider BNB as a potential security.
Currently, Binance is battling market speculation based on most-recent withdrawals worth billions of dollars and proof-of-reserves statements by Mazars, Binance’s auditing firm. Moreover, a Binance spokesperson confirmed that,
Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment.
Binance’s distress is visible in its native token BNB which has dropped 17% in value in December, currently trading at $245 after its fall from $690 in May 2022. Additionally, its market capitalization has also tanked from its highest worth of $116 billion to $40 billion.
Analysts are recalling the same pattern in the fall of the FTT token’s value right before the cryptocurrency exchange, FTX collapsed entirely. While analysts scrutinize BNB’s valuation, investors have caught wind of the situation.
Many crypto analysts suspect that US exchanges may have avoided the BNB listing to prevent conflict with the regulators. IntoTheBlock’s head researcher, Lucas Outumuro shared that exchanges are not listing BNB since they deem it as security given the centralized nature of its network.
“It’s probably not worth U.S. exchanges risking listing a security especially if it’s a competitor’s token,” added Outumuro. At present, KuCoin, Huobi, and OKX have BNB listed on their exchanges. However, Kraken, which has over 120 tokens listed, has not enabled the Binance token to its users.
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