Fine of almost 4 billion dollars for binance! Could these affect the market?
Hello friends, The US Department of Justice is actually asking for or negotiating a fine of 4 billion dollars for Binance and at the same time possible criminal charges against Changpeng Zhao.
Before delving into the topic, we are going to talk about why this is bad in the short term but very good in the long term and why BNB, the currency of the binance ecosystem, has had a very strong reaction to this issue.
When the news broke, many were expecting BNB to crash with this but it has actually had quite a strong boost. What is this about? First let's start with the bad topic in the short term, this may bring certain repercussions that are not so bad but not so good either, but in the end we know that 4 billion dollars for the number one exchange in the world with all the trading volume they handle is not that much and it is not worth it either. It's going to be worth a lot of money. The only bad thing that would be in the short term is that a precedent is established for other exchanges through this case.
Since we know that this is an investigation that takes a long time and they are going to want to apply the same weight of the law in different cases, we would also have to be very aware of what other types of exchanges or what other types of cases have a close similarity. Because if this were to happen, precisely this type of fine and this type of criminal charges would occur, other exchanges would also be adrift for now, that is the only bad thing.
Now we are going to talk about why this is good in the long term, this is good in the long term because the market is increasingly having less negative fundamentals and fewer bad things pending. We know that this year there was the issue of Sam Bankman Fried's trial with the theme of FTX that at some point made the price react very, very negatively in the market.
However, today we had the fact that Bitcoin had the SEC once again postpone the decision on ETFs. And on top of that, this news came out about Changpeng Zhao and Binance and in reality the price of bitcoin and the market in general has not budged. It also talks about how the psychology of the market is already more polarized on one side than the other, before we could see that in 2021 there was news that a company was going to sell 10 bitcoin and the price fell very strongly but now it is very different
Now this type of negative news is coming out and the market seems to no longer be interested, now it is much more interested in positive news and that cases that have been under investigation for a long time and that tarnish the world of cryptocurrencies are already being closed with the intention of starting a Year 2024, like a clean slate, Binance's mistakes in the past have been solved, FTX's mistakes are already in the past.
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Link Twitter
https://twitter.com/joel_jai1/status/1726803288396546073
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