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What's next for Binance Changpeng Zhao, CZ?


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Binance's former CEO, Changpeng Zhao, has admitted to violating US anti-money laundering laws, which may result in him facing jail time. This news comes as a surprise to many, as CZ is highly regarded in the industry, unlike some other exchange founders who have been caught engaging in fraudulent activities.
 
The US Justice Department is now seeking a longer prison sentence than the initial 12-18 months and has also denied CZ's request to travel despite his trial starting in February 2024.
 
Following the news of Binance CZ's guilty plea, more than $1 billion was withdrawn from Binance as investors sought out more secure options due to the uncertainty surrounding the exchange and US regulations.
 
This raises the question of how this situation will impact the long-term future of cryptocurrency, as well as which exchanges are best for investors at this time.
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I believe this is nothing but a witch hunt cos apparently Binance is on its way to been the biggest company world over. Also, there are rumours that all this hapenings could be BlackRock making a move to clear the house ahead of the most awaited ETF.

Notwithstanding, i took precautionary measures and moved my funds to Bitget and Bybit, better to be safe than sorry yah.

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On 28/11/2023 at 11:19, collins244 said:
Binance's former CEO, Changpeng Zhao, has admitted to violating US anti-money laundering laws, which may result in him facing jail time. This news comes as a surprise to many, as CZ is highly regarded in the industry, unlike some other exchange founders who have been caught engaging in fraudulent activities.
 
The US Justice Department is now seeking a longer prison sentence than the initial 12-18 months and has also denied CZ's request to travel despite his trial starting in February 2024.
 
Following the news of Binance CZ's guilty plea, more than $1 billion was withdrawn from Binance as investors sought out more secure options due to the uncertainty surrounding the exchange and US regulations.
 
This raises the question of how this situation will impact the long-term future of cryptocurrency, as well as which exchanges are best for investors at this time.

Though I'm not sure why, Binance purposefully chose not to comply with US financial requirements in order to maintain operations. I'm sure they took note of this and, going forward, other exchanges should also take note and take appropriate action to steer clear of stories that require attention. There are still some excellent exchanges available, such as Bitget, which people noted in their remark. If you've observed, they typically comply with regulatory requirements. Their management must really care about their clients since they go above and beyond to establish a reputation, and as such, they are commendable.

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Market update: Bitcoin holds the high ground, as Binance deals with client exodus

Bitcoin approaches $38k, eyes $40k close. Binance sees $1bn withdrawal post-CEO exit, BNB struggles near lows.

 

original-size.webpSource: Bloomberg

 

IG Analyst | Publication date: 

Bitcoin hovers near $38k but struggles for sustained breakthrough. A recent CoinShares report suggests its stability relates to increased institutional investment.

The market witnesses a notable surge, marking the 9th consecutive week of positive inflows. Anticipation of the spot Bitcoin ETF and next year's halving event likely fuels this demand. Bitcoin records $312 million inflows last week, contributing to a yearly total of $1.5 billion. This suggests growing investor confidence.

Over the last 18 months, there's been a significant shift, with Hodlers increasing exponentially, further underlining positive sentiment in the cryptocurrency landscape.

Crypto coins chart

 

original-size.webpSource: TradingView

Binance faces client exodus following Zhao’s exit

Binance grapples with the aftermath of CEO Changpeng Zhao's exit, causing turbulence in the crypto exchange sphere. Despite a Q4 crypto renaissance, the exchange faces uncertainties.

Concerns arise over Binance's sustainability following $4.3 billion fines, leading to approximately $1 billion outflows post-Zhao's departure. Continued outflows pose a substantial risk, warranting close monitoring.

The BNB token encounters challenges, dropping 8% after Zhao's announcement. The removal of zero-fee crypto trading has also eroded Binance's market share. While not facing the same charges as FTX, industry watchers ponder if Binance is on the brink of a decline.

BNB daily chart

 

original-size.webpSource: TradingView

Risk events ahead

There remains some risk from a USD perspective this week, which could impact the US dollar and thus Bitcoin. We witnessed a bit of that today with Fed policymakers' comments received as a tad dovish - which has seen the US dollar selloff gain further traction.

Market participants appeared buoyed by comments from Fed policymaker, Waller in particular who stated that: “If inflation consistently declines, there is no reason to insist that rates remain really high.” If market continue to perceive Fed comments and US data in a dovish light this week, and the US dollar selloff continues, this could help Bitcoin achieve a clean break above the $38k mark.

US economic calendar

 

original-size.webpSource: DailyFX

Bitcoin technical analysis

From a technical standpoint, BTCUSD is interesting as it hovers just below the $38k mark. Nothing much has changed from a technical standpoint done previously. The 38,000 mark remains a stumbling block to further upside, and I fear the longer we stall at this level, the greater the likelihood for a selloff becomes.

Resistance levels:

  • 38000
  • 40000
  • 42500

Support levels:

  • 36200
  • 35500-35200
  • 34177
 

original-size.webpSource: TradingView

 

 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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On 28/11/2023 at 18:52, Wakanda said:

Now I realize why Binance has been evading regulations all this while. Moving forward, It's advisable investors use regulatory compliant CEX. 

That's a wise call and it's important to also confirm that the exchange of your chosen should be in compliance and perhaps licensed in your country. 

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On 29/11/2023 at 14:20, Megamind said:

Though I'm not sure why, Binance purposefully chose not to comply with US financial requirements in order to maintain operations. I'm sure they took note of this and, going forward, other exchanges should also take note and take appropriate action to steer clear of stories that require attention. There are still some excellent exchanges available, such as Bitget, which people noted in their remark. If you've observed, they typically comply with regulatory requirements. Their management must really care about their clients since they go above and beyond to establish a reputation, and as such, they are commendable.

Thanks for sharing your thoughts. Truly, I have not seen Bitget in any bad news. They must be doing something different.

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On 28/11/2023 at 13:06, XTRAVAGANZA said:

I believe this is nothing but a witch hunt cos apparently Binance is on its way to been the biggest company world over. Also, there are rumours that all this hapenings could be BlackRock making a move to clear the house ahead of the most awaited ETF.

Notwithstanding, i took precautionary measures and moved my funds to Bitget and Bybit, better to be safe than sorry yah.

It is better to be careful in this space. Didn't Bybit leave the UK market recently due to regulatory reasons?

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On 28/11/2023 at 18:52, Wakanda said:

Now I realize why Binance has been evading regulations all this while. Moving forward, It's advisable investors use regulatory-compliant CEX. 

Yeah, it is safer to use an exchange that is regulatory compliance with your region to avoid this Binance saga. Even though many analysts see CZ decision to quit Binance as an attempt to save the whole industry. 

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Bitcoin (BTC/USD) Holds the High Ground as Binance Deals with Client Exodus
Nov 28, 2023 7:46 PM +02:00

Zain Vawda, DailyFX Analyst
image.png



BITCOIN, CRYPTO KEY POINTS:

  • Bitcoin Trades Just Above the $38k Mark. Are We Finally Going to Print a Daily Close Above the Resistance Level with an Eye on the $40k Handle?
  • Binance Users Pull $1 Billion Following the Exit of CEO Changpeng Zhao.
  • BNB Token Struggles and Hovers Near Recent Lows. Can the Exchange Survive Moving Forward?
     


Bitcoin continues to threaten the $38k mark but remains unable to find acceptance above the key level. The reason the world’s largest cryptocurrency has held onto its gains may have to do with an increase in capital inflow from institutional investors over the past week, per a report by CoinShares.

There has also been a notable surge in demand for digital assets of late with the past week being the 9th consecutive week of positive inflows to the market. A lot of this could still be down to anticipation of the spot Bitcoin ETF and the halving event next year. Bitcoin in particular saw inflows of around $312 million over the past week with the yearly total now at around the $1.5 billion mark as investor confidence appears to be on the rise. There has also been a notable shift over the last 18 months with the number of Hodlers growing exponentially as well.

image.png
Source: TradingView

BINANCE FACES CLIENT EXODUS FOLLOWING ZHAO’S EXIT
It’s been a topsy turvy couple of days for Binance as it continues to grapple with the fallout from exit of former CEO Changpeng Zhao. This has left the world of crypto exchanges reeling even if Cryptocurrencies themselves have enjoyed a renaissance in Q4.

Binance faced questions last week about its ability to continue given the size of the fines imposed on the exchange which totaled $4.3 billion. As news filtered through the exchange saw outflows of around the $1 billion mark in the 24 hours post Zhao’s departure being announced. If this continues it could pose a serious risk to the exchange and may be worth monitoring in the days ahead.

The BNB token as well faced challenges in the aftermath as it fell as much as 8% following Zhao’s announcement. The exchange has also lost a significant amount of market share from zero-fee crypto trading since the removal of this lucrative incentive. Binance does not face the same charges as FTX but are we about to witness another titan of the industry disappear into the doldrums?

BNB Daily Chart, November 28, 2023

image.png
Source: TradingView

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On 01/12/2023 at 10:37, MongiIG said:

Bitcoin (BTC/USD) Holds the High Ground as Binance Deals with Client Exodus
Nov 28, 2023 7:46 PM +02:00

Zain Vawda, DailyFX Analyst
image.png



BITCOIN, CRYPTO KEY POINTS:

  • Bitcoin Trades Just Above the $38k Mark. Are We Finally Going to Print a Daily Close Above the Resistance Level with an Eye on the $40k Handle?
  • Binance Users Pull $1 Billion Following the Exit of CEO Changpeng Zhao.
  • BNB Token Struggles and Hovers Near Recent Lows. Can the Exchange Survive Moving Forward?
     


Bitcoin continues to threaten the $38k mark but remains unable to find acceptance above the key level. The reason the world’s largest cryptocurrency has held onto its gains may have to do with an increase in capital inflow from institutional investors over the past week, per a report by CoinShares.

There has also been a notable surge in demand for digital assets of late with the past week being the 9th consecutive week of positive inflows to the market. A lot of this could still be down to anticipation of the spot Bitcoin ETF and the halving event next year. Bitcoin in particular saw inflows of around $312 million over the past week with the yearly total now at around the $1.5 billion mark as investor confidence appears to be on the rise. There has also been a notable shift over the last 18 months with the number of Hodlers growing exponentially as well.

image.png
Source: TradingView

BINANCE FACES CLIENT EXODUS FOLLOWING ZHAO’S EXIT
It’s been a topsy turvy couple of days for Binance as it continues to grapple with the fallout from exit of former CEO Changpeng Zhao. This has left the world of crypto exchanges reeling even if Cryptocurrencies themselves have enjoyed a renaissance in Q4.

Binance faced questions last week about its ability to continue given the size of the fines imposed on the exchange which totaled $4.3 billion. As news filtered through the exchange saw outflows of around the $1 billion mark in the 24 hours post Zhao’s departure being announced. If this continues it could pose a serious risk to the exchange and may be worth monitoring in the days ahead.

The BNB token as well faced challenges in the aftermath as it fell as much as 8% following Zhao’s announcement. The exchange has also lost a significant amount of market share from zero-fee crypto trading since the removal of this lucrative incentive. Binance does not face the same charges as FTX but are we about to witness another titan of the industry disappear into the doldrums?

BNB Daily Chart, November 28, 2023

image.png
Source: TradingView

The market is really trying to break boundaries this December & would love to see that happen cos this month has never been this rosy from past records. On the issue of binance with SEC, I think with time everything will  be fine & I'm thinking of leveraging on the present market conditions on BG's earn products.

Link to comment
On 29/11/2023 at 14:01, MongiIG said:

Market update: Bitcoin holds the high ground, as Binance deals with client exodus

Bitcoin approaches $38k, eyes $40k close. Binance sees $1bn withdrawal post-CEO exit, BNB struggles near lows.

 

original-size.webpSource: Bloomberg

 

 

IG Analyst | Publication date: Wednesday 29 November 2023 07:31

Bitcoin hovers near $38k but struggles for sustained breakthrough. A recent CoinShares report suggests its stability relates to increased institutional investment.

The market witnesses a notable surge, marking the 9th consecutive week of positive inflows. Anticipation of the spot Bitcoin ETF and next year's halving event likely fuels this demand. Bitcoin records $312 million inflows last week, contributing to a yearly total of $1.5 billion. This suggests growing investor confidence.

Over the last 18 months, there's been a significant shift, with Hodlers increasing exponentially, further underlining positive sentiment in the cryptocurrency landscape.

Crypto coins chart

 

original-size.webpSource: TradingView

Binance faces client exodus following Zhao’s exit

Binance grapples with the aftermath of CEO Changpeng Zhao's exit, causing turbulence in the crypto exchange sphere. Despite a Q4 crypto renaissance, the exchange faces uncertainties.

Concerns arise over Binance's sustainability following $4.3 billion fines, leading to approximately $1 billion outflows post-Zhao's departure. Continued outflows pose a substantial risk, warranting close monitoring.

The BNB token encounters challenges, dropping 8% after Zhao's announcement. The removal of zero-fee crypto trading has also eroded Binance's market share. While not facing the same charges as FTX, industry watchers ponder if Binance is on the brink of a decline.

BNB daily chart

 

original-size.webpSource: TradingView

Risk events ahead

There remains some risk from a USD perspective this week, which could impact the US dollar and thus Bitcoin. We witnessed a bit of that today with Fed policymakers' comments received as a tad dovish - which has seen the US dollar selloff gain further traction.

Market participants appeared buoyed by comments from Fed policymaker, Waller in particular who stated that: “If inflation consistently declines, there is no reason to insist that rates remain really high.” If market continue to perceive Fed comments and US data in a dovish light this week, and the US dollar selloff continues, this could help Bitcoin achieve a clean break above the $38k mark.

US economic calendar

 

original-size.webpSource: DailyFX

Bitcoin technical analysis

From a technical standpoint, BTCUSD is interesting as it hovers just below the $38k mark. Nothing much has changed from a technical standpoint done previously. The 38,000 mark remains a stumbling block to further upside, and I fear the longer we stall at this level, the greater the likelihood for a selloff becomes.

Resistance levels:

  • 38000
  • 40000
  • 42500

Support levels:

  • 36200
  • 35500-35200
  • 34177
 

original-size.webpSource: TradingView

 

 

 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Interesting update. I also withdrew my funds from Binance and deposited it on Bitget and Bybit exchange just to be safe. Though, personally, I believe Binance will bounce back from this set back. It is no news that both CZ and Binance has contributed immense to the growth of the crypto space and continues to do so.. More so, their case is a different from FTX as you clearly stated. I am optimistic Binance is going no where, not any time soon yah.

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