BTC$56 527.62


ETH$3 261.76




Binance Coin






How will regulatory troubles and mandatory KYC impact Binance Coin (BNB) price?

23 Aug 2021

#Binance Coin

Data shows traders have mixed emotions about BNB’s future given Binance’s regulatory troubles and new mandatory KYC policy. Binance Coin (BNB) rallied 30% in two weeks, but the fourth largest cryptocurrency by market capitalization seems to be struggling to break the $450 resistance. Coincidently, this is the same top from June 3, which was followed by a 48% correction down to $225. Given the similarity of the situation when compared to previous instances, investors have reasons to doubt the recent performance, especially as Solana (SOL), a competing smart contract platform, reached an all-time high on August 18. The move was partially attributed to a recent $70-million crowdfund to support its decentralized exchange (DEX), Mango Markets, and the launch of a well-subscribed NFT project.

BNB reacted negatively after the exchange suddenly halted stock tokens trading on July 16, and investors' increased concern that regulatory hurdles would severely impact the exchange's growth.

In late July, the shutdown of derivatives trading for Binance's European and Hong Kong clients added to BNB's woes. On August 18, De Nederlandsche Bank, the Netherlands' Central Bank, issued a warning to Binance after concluding that the exchange offered crypto services to local residents. The authority alleges that the company is not acting in compliance with the country's Anti-Money-Laundering and Anti-Terrorist-Financing Act.

The BNB perpetual contracts premium has vanished

Derivatives data gives good insight into how whales and professional traders are positioned in Binance Coin (BNB). Even though future contracts longs (buyers) and shorts (sellers) are matched at all times, their leverage may vary. Thus, by gauging the perpetual contracts funding rate, one can determine how bullish or bearish those investors are.

Derivatives exchanges will charge the side demanding more leverage, which is paid to the opposing side. Usually, it is calculated every 8-hours, but some exchanges such as FTX have hourly rates. In neutral markets, the funding rate tends to vary from 0% to 0.03% on the positive side. This number is equivalent to 0.6% per week and indicates that longs are the ones paying it.

Between Aug. 11 and Aug. 17, there was a slightly bullish 0.10% positive funding rate, but it dissipated over the past few days. Although entirely different from the bearish negative 0.15% indicator seen in late July, the current reading does not transpire confidence from leverage traders.

Professional traders have not turned bullish

To confirm if this data reflects some specific issue regarding the perpetual contracts, let's look at the quarterly futures contracts premium. Retail traders usually avoid the quarterly contracts due to the hassle of calculating the futures premium or manually rolling over positions nearing expiry.

These fixed-date instruments do not have a funding rate adjustment, unlike the perpetual contracts. Therefore, eventual demand imbalances are reflected by a price difference compared to the regular spot markets. Healthy markets should display a 0.2% to 1% premium in the quarterly contracts, while a negative indicator is a bearish situation known as backwardation.

The data confirms the mid-July bearishness previously seen on the funding rate, as the Sept. futures contracts displayed a 5% discount. However, the quarterly contract has been neutral over the past few weeks, indicating a neutral-to-bearish sentiment from professional traders. Derivatives indicators show zero signs of bullishness from investors. It is also clear that retail traders and whales currently have little confidence that the $450 level will be broken in the short term.


Introducing Exness Team Pro - The voice of the markets
Introducing Exness Team Pro - The voice of the markets
AMarkets Adds 5 New Cryptocurrencies
AMarkets Adds 5 New Cryptocurrencies
AMarkets improves its cryptocurrency trading conditions
AMarkets improves its cryptocurrency trading conditions
Binance burns $390M worth of BNB tokens
Binance burns $390M worth of BNB tokens
Binance Allows Users to Trade Tokenized Stock Tokens Starting With Tesla
Binance Allows Users to Trade Tokenized Stock Tokens Starting With Tesla
Binance Coin (BNB) market cap passes Santander and UBS
Binance Coin (BNB) market cap passes Santander and UBS
Exchange tokens rally ahead of next week’s long-awaited Coinbase IPO
Exchange tokens rally ahead of next week’s long-awaited Coinbase IPO
Binance Visa cards are now shipping to European customers
Binance Visa cards are now shipping to European customers
Binance CEO Reveals the Truth: How CZ Saved Everything
Binance CEO Reveals the Truth: How CZ Saved Everything

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64.8% 79 $56 527.62 10.48% 8.51% $1 110 147 682 895 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 61.6% 81 $3 261.76 6.79% 11.77% $391 912 269 102 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.6% 1 $1.000539 0.05% 0.07% $98 116 459 661 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 68.4% 69 $399.13 2.95% 11.88% $59 686 585 336 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 77.6% 44 $111.94 9.86% 1.85% $49 513 280 834 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 86% 22 $0.559906 4.83% -1.62% $30 567 646 280 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 94.8% 1 $0.999901 -0.02% -0.01% $28 515 855 559 USDC 7 days price change
8 Cardano (ADA) ADA Cardano predictions 65.2% 67 $0.623895 7.87% -1.48% $22 130 831 988 ADA 7 days price change
9 Avalanche (AVAX) AVAX Avalanche predictions 73.6% 51 $39.55 7.72% 1.57% $14 916 858 926 AVAX 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 86.4% 18 $0.096154 13.46% 10.57% $13 773 558 171 DOGE 7 days price change
11 TRON (TRX) TRX TRON predictions 68% 61 $0.141269 2.39% 2.68% $12 431 536 939 TRX 7 days price change
12 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 68.8% 61 $0.140897 2.33% 2.74% $12 398 794 087 WTRX 7 days price change
13 Chainlink (LINK) LINK Chainlink predictions 77.6% 47 $19.33 5.89% -0.97% $11 350 455 370 LINK 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 70.4% 52 $8.14 6.13% 4.66% $10 453 525 860 DOT 7 days price change
15 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.