BNB tumbles in key parameters as Binance faces regulatory heat

ambcrypto.com:

Binance’s native token Binance Coin [BNB] plunged nearly 6% in the past 24 hours, after the U.S. Commodity Futures Trading Commission (CFTC) alleged that crypto behemoth and founder Changpeng Zhao (CZ) violated compliance rules to expand its business.

Is your portfolio green? Check the Binance Coin [BNB] Profit Calculator

According to data from CoinMarketCap, more than $3 billion of BNB’s market cap was wiped out on 27 March, as the news sent ripples across the crypto spectrum.

BNB’s long-term holders, who were betting on high prices, were caught off-guard and forced to liquidate positions worth $1 million per data from Coinglass.

Source: Coinglass

The lawsuit filed by the CFTC accused Binance of operating an illegal crypto derivatives exchange and, in turn, using unfair practices to evade regulatory scrutiny of U.S.-based customers.

Since the development, tokens worth $1.19 billion were flown out of the exchange, as growing FUD prompted users to keep funds in self-custody rather than centralized exchanges (CEXs). Over the past 24-hour period, the net inflow was negative.

Source: DeFiLlama

Things were not looking too good on the DeFi front as well. The trading volume of decentralized exchanges (DEXs) on the BNB Chain dropped significantly.

Since hitting a four-month high on 12 March, the activity has contracted by as much as 70% at press time, data from DeFiLlama showed. The total weekly volume also fell by nearly 25%.

Source: DeFiLlama

As per Santiment, the daily transaction volume in loss jumped over 600% in the last week. However, whale transactions rose to their highest value since 22 March after the lawsuit, implying that big addresses could be buying the dip.

The 30-day MVRV Ratio went downhill since mid-March as the overall