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Binance Coin price rises as Binance.US looks to buy out more firms after Voyager Digital acquisition

  • Binance.US purchased the now-bankrupt Voyager Digital for $1.02 billion.
  • Binance US arm’s CEO, Brian Shroder, stated the exchange still has hundreds of millions in current assets.
  • Binance Coin price bounced off of its support level at $240 to trade at $251, looking to mark a 9% rally.

Binance is making headlines every other week in the crypto space, be it the parent company exchange or its American extension. Following the pattern, Binance’s US arm, Binance.US, announced how the exchange would be taking charge to pull out deserving companies taking a loss from the FTX-induced liquidity crunch.

Binance.US to the rescue

Binance emerged as a key entity over the last couple of weeks following FTX’s collapse. Continuing that streak, Binance.US announced that the company is now exploring more companies to purchase. Earlier this week, the US arm of the world’s biggest crypto exchange bought Voyager Digital’s assets for $1.02 billion. 

Going forward, Binance.US’s CEO, Brian Shroder, is expecting to be doing so with other firms as well. In an interview, the executive stated,

“We are in the data room for many other assets that make sense as we focus on growth. We are learning about the deals. We are also looking at several firms that are in trouble right now.”

Shroder noted that the American arm of Binance has “hundreds of millions of dollars in current assets” from its recent funding rounds to facilitate the same. 

However, sustainability is the biggest factor in question in the crypto space at the moment due to the FTX debacle. Reassuring Voyager Digital customers, Shroader had stated that the exchange would be providing users access to their assets by March 2023. Expanding on the same, he said,

“We always maintain 1:1 reserves, and are subject to regular audits and regulatory reporting by government entities. We do not offer margin products, undertake proprietary trading, or take on any corporate debt.”

Binance Coin price runs up

Binance Coin price spiked over the last few days after the cryptocurrency fell to trade at $229 on December 17. Trading at $249 at the time of writing, BNB inched closer to breaching its immediate resistance level at $253.70.

If Binance Coin price manages to break above the barrier, it would be able to chart a rise toward its critical resistance level at $264. Flipping this into a support floor would allow BNB price to rally and tag $274, constituting a 9% rise. From here on, the exchange token would be able to initiate recovery.

BNB/USD 4-hour chart

BNB/USD 4-hour chart

However, if the breach fails and Binance Coin price starts dipping, the first line of defense would be $240. If the price declines further, the cryptocurrency will end up tagging the support at $234. A daily candlestick close below this point would invalidate the bullish thesis, setting BNB up for a fall to a five-month low of $219.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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