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Top Binance announcements this week and their impact on BNB’s price

Top Binance announcements this week and their impact on BNB’s price

Through constant innovation, Binance has maintained its position as a market leader. In today’s new cycle many stories go unnoticed, but here are the exchange’s top announcements this week and their implications on BNB’s value.

JEX token airdrop

On Sept. 3, Binance revealed that it acquired JEX, a cryptocurrency trading platform offering spot and derivatives trading services. The crypto-asset exchange renamed Binance JEX, is focused on delivering derivatives products, including futures, options, perpetual contracts.

Following the acquisition, the exchange announced it will convert ERC-20 JEX tokens to native Binance Chain-based BEP-2 tokens. The firm is also planning to distribute 200 million unlocked JEX team tokens, worth over $12 million, to all BNB holders on Binance.com. Finally, it will conduct a monthly airdrop of JEX tokens to BNB holders, equivalent to 30 percent of the profits generated by Binance JEX each month.

NYDFS-approved stablecoin

On Sept. 5, Binance announced that it had received approval from the New York State Department of Financial Services (NYDFS) to create a stablecoin. Dubbed Binance USD (BUSD), the new stablecoin will be built on the Ethereum blockchain in association with Paxos and will be pegged one-to-one with the U.S. dollar. BUSD will be available for direct purchase and redemption on the Paxos platform and on Binance.com.

“Paxos is leading the digital trust space and we are excited to work with them in developing our native stablecoin. We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets,” said Binance CEO, Changpeng Zhao.

Binance U.S.

Binance.US is a regulatory compliant cryptocurrency exchange that is set to launch in the coming weeks, according to a blog post published by the company. Customers will be able to access the platform via web, and later on iOS and Android app.

Currently, Binance is working to release a list of the states where the cryptocurrency exchange will operate before it begins onboarding customers. But, it is expected that all customers will be required to go through a know-your-customer (KYC) process and provide a valid government ID and social security number (SSN) in order to register for Binance.US.

Binance Coin technical analysis

Although Binance continues expanding, its native currency, BNB, doesn’t appear impacted by the recent news, at least in the short-term. Instead, BNB entered a consolidation phase on Aug. 29 and is currently in a no-trade zone based on the 12-hour chart.

Under this time frame, the Bollinger bands appear to be squeezing. Squeezes are usually followed by periods of high volatility. The longer the squeeze the higher the probability of a strong breakout. Thus, it would be wiser to wait for Binance Coin to move out of the range between $20.9 and $23.5.

A break below support could take this cryptocurrency down to $18.8. Meanwhile, a break above resistance followed by a spike in volume could take BNB to $26.7.

Binance Coin US Dollars price chart
BNB/USD by TradingView

Despite the lackluster price action over the last few weeks, the exchange appears to be building the fundamentals for their native token to succeed in the future. As the competition among exchanges intensifies, it remains uncertain whether Binance will be able to retain its position as the world’s leading exchange.

But, given the flurry of innovation from the Binance team, wrestling away the title will be no easy task.

Binance Coin | BNB

Updated: Nov 7 at 6:01 am PDT
$22.77
9.52%

Binance Coin, currently ranked #8 by market cap, is up 9.52% over the past 24 hours. BNB has a market cap of $3.54B with a 24 hour volume of $309.53M.

Chart by CryptoCompare

Binance Coin is up 9.52% over the past 24 hours.

Posted In: , Crypto Exchanges, Price Watch
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Ali Martinez
Author

Ali Martinez

Technical Analyst @ CryptoSlate

After Ali began forex trading in 2012 In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin.

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