Following the FTX collapse, the largest cryptocurrency exchange by trade volume, Binance, has been surrounded by rumors and speculation in recent times. On Dec. 12, 2022, Reuters reported that U.S. Department of Justice prosecutors have been investigating Binance, according to four people familiar with the matter. Moreover, while a number of crypto assets have risen in value this past week, Binance’s exchange token has slid roughly 6.9% against the U.S. dollar over the last seven days.
Binance’s BNB Takes a Hit from the Speculation Surrounding the World’s Largest Crypto Exchange
This week, Binance is dealing with a lot of rumors, speculation, and FUD (fear, uncertainty, and doubt) following the aftermath of the recent FTX collapse. Across social media, there’s been speculation concerning Binance’s proof-of-reserves (POR) and criticism against the company’s POR efforts.
On Dec. 13, Changpeng Zhao, commonly known as CZ, addressed the FUD on Twitter. “FUD helps us grow, even though they are thoroughly annoying,” CZ tweeted. “You can FUD about someone without explicitly mentioning their name, which spreads awareness. It also helps unite their supporters because it forms a common defense alliance.”
CZ insisted that since day one, Binance was relentlessly targeted with FUD — some of which was allegedly sponsored by a large exchange. “Since then, there has hardly been a week going by without some FUD. We learned the ability to ignore them and keep building,” CZ added in his Twitter thread.
CZ’s commentary follows the Reuters report published on Dec. 12, which claims the U.S. Department of Justice (DOJ) has been investigating Binance. Reuters reported on Monday that four people familiar with the matter explained that DOJ prosecutors are at odds about the alleged investigation. The reported split between DOJ prosecutors is “delaying the conclusion of a long-running criminal investigation” into Binance, Reuters reporter Angus Berwick wrote.
Meanwhile, Binance’s exchange token BNB has taken a big hit from the speculation and FUD surrounding the world’s largest crypto exchange. The crypto exchange token BNB has lost 8.5% in value during the last two weeks.
Seven-day stats show BNB shed more than 8% against the greenback but since the recent U.S. inflation data was published on Tuesday, BNB is now only down 6.9% against the U.S. dollar. The trend is the opposite of what leading cryptos like BTC and ETH have done as both coins increased in value between 5-7% higher on Tuesday morning (9 a.m. ET).
Despite the significant losses this week, BNB has outperformed crypto assets like BTC and ETH in terms of losses from the all-time highs posted last year. For instance, despite BTC’s rise today, the leading crypto asset is still down 74% from the all-time high (ATH) last year. Ethereum (ETH) is down 72% from last year’s ATH, but Binance’s BNB is only down 60.8% since the crypto asset’s $686 per unit price high printed on May 10, 2021.