Binance CEO Changpeng Zhao plays up KOLs as BNB price suffers aftermath of regulatory scrutiny
- BNB price was knocked over the bench by regulatory attack against Binance Exchange in early June.
- Recovery efforts remain subdued have amid abounding Fear, Uncertainty, and Doubt around the Binance ecosystem as traders cash in on impulse.
- As exchange CEO Changpeng Zhao focuses on fighting FUD, BNB price indicates rising momentum.
Binance CEO Changpeng Zhao (CZ) remains steadfast, relentlessly fighting negative publicity about his firm, both substantiated and unsubstantiated. His efforts have intensified this year as Binance Exchange has come into the spotlight with the US Securities and Exchange Commission (SEC) clamping down on exchanges.
Binance fights FUD as exchange endures regulatory clampdown
Binance CEO Changpeng Zhao has made recent highlights as he continues to caution investors, Binancians, and those outside the Binance Coin (BNB) community against impulsive trading. In a recent announcement, he highlights messages sent to Binance co-founder, Yi He, by an individual who, according to him, may be the primary propagator for the Fear, Uncertainty, and Doubt (FUD) that is always quick to paint the Binance ecosystem in a bad light.
I learned today that a guy who is constantly spreading FUD about @Binance was just because he pitched his project to Binance Labs and we didn't invest.
— CZ Binance (@cz_binance) July 17, 2023
Feel really sad for him. I hope he eventually finds his way out of it, and actually focus on his own project. https://t.co/d559NJvgTB
Yi He, Binance co-founder, received direct messages from a supposed developer, trying to pitch his project to Binance Labs but was rejected. According to CZ, this individual has been spreading FUD against the exchange out of spite in retaliation for the largest crypto exchange by trading volume refusing to invest in his project.
The news comes after revelations by Yi He, in a July 11 post, about a “KOL” who is constantly reaching out to her through the private message function on Twitter. The individual has not been named, but the Binance co-founder refers to him/her as a KOL nonetheless.
In crypto jargon, KOL is an abbreviation for Key Opinion Leader, representing a crucial source of insight about cryptocurrency companies and the future of blockchain technology. Sometimes some of these opinion leaders give factual information but not always and certainly not all of them. This is why investors are encouraged to conduct their own research and not trade on impulse as some KOL present influencer tendencies to drive the market for their own gains.
Notably, considering the highly volatile nature of the cryptocurrency industry, it is susceptible to positive or negative news even when these are mere speculations devoid of facts or substance. As such, the opinions of KOLs carry a lot of weight in influencing crypto prices, which brings CZ to the signature "4", urging investors not to be quick to act on FUD.
Role of FUD in driving prices
FUD is a key ingredient for a less-than-stable market as investors act on whims to either long or short their positions. While acting on FUD could prove worthwhile in certain instances, there are cases when it leaves investors out of big trades and therefore misses out on huge profits. Moreover, certain market players tend to use FUD to manipulate crypto prices for their own gain.
As a side note, many Ripple (XRP) community members missed out on 70% gains that the remittance token posted recently after shorting their XRP positions because of the uncertainty in the Ripple vs. SEC case. The rally was unexpected because there was no notice about Judge Torres releasing her summary judgment.
Similarly, Polygon (MATIC), Cardano (ADA), and Solana (SOL), which recorded upwards of 10% gains, also saw several investors miss out on the profits after they fled these markets when the US SEC labeled the three altcoins as securities during the crackdown against Coinbase exchange.
BNB price turns bullish following Binance CEO announcement
Binance Coin (BNB) is up almost 2% on the back of CZ, revealing the identity of the FUD propagator. The altcoin boasts a 40% increase in 24-hour trading volume as investor interest in BNB resurfaces. Meanwhile, technical indicators point to an increasing effort by the bulls after the Relative Strength Index (RSI) fell short of confirming the downtrend.
In addition, the Moving Average Convergence Divergence (MACD) indicator is on a rising path despite being in negative territory.. This adds evidence of a bullish effort that could bode well for the upside. An increase in buyer momentum could see BNB price tag the 23.6% Fibonacci Retracement level at $250.8.
In a highly bullish case, Binance Coin price could extend north to tag the 50% Fibonacci Retracement at $285.4.
BNB/USDT 1-day chart
On the downside, early profit-taking from investors who want to book profits after breaking even from the July 4 to 6 downtrend could interrupt the current rally. This could send BNB back to the $231.2 level.
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Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
