BNB Price Prediction Amid Speculation CZ Pushing to Liquidate & Burn Illegal Tokens
BNB, the tokens that powers the Binance Smart Chain or BNB Chain, fell to its lowest level since July 2022 under $210 on Monday.
Speculation is rife that Binance CEO Changpeng Zhao might be pushing for a series of major loan liquidations on the BNB Chain-based Venus protocol.
Last October, 2 million BNB tokens were illegally minted in a bridge exploit and then used by the exploiter to borrow $150 million from the Venus protocol.
Venus subsequently altered its protocol documentation to say that when these loans are liquidated and the protocol takes custody of these BNB coins, they will be handed over to Binance, who will then burn them out of circulation.
As per a tweet from crypto analyst MartyParty, one major liquidation was at $210.80, which has now been struck.
As per the analyst, 300K in liquidated BNB is now locked in the Venus protocol awaiting a governance vote for it to be released to Binance, who have promised to burn it.
MartyParty flagged the next major Venus protocol liquidation level at $190.
And the way things are looking, BNB could easily fall there.
Its drop in the last few days has seen it convincingly lose its grip on its 21 and 50-Day Moving Averages (DMAs).
The latest drop also saw the coin fall below key support at $220 in the form of the late 2022 and June 2023 lows.
With BNB still suffering amid FUD as a result of the US Securities and Exchange Commission (SEC)’s classification of the coin as a security and lawsuit against Binance, BNB looks odds on to test its 2022 lows in the mid-$180s.
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