Binance Founder Changpeng Zhao Confirms Exit as CEO
Binance Coin (BNB) price has fallen 10% from $267 to $240 as markets react to Binance Founder Changpeng Zhao’s departure. Derivative Market analysis provides insights into possible BNB price action for the upcoming days. The exit of CZ as CEO has triggered a series of bearish moves from investors trading Binance’s native BNB coins.
On Tuesday, November 21, the US Department of Justice reported that Binance CEO Chanpeng Zhao (CZ) has agreed to step down. Hours later, CZ confirmed in an X (Twitter post) that his set to take responsibility as he left his role as CEO of the world’s leading crypto exchange by trading volume.
Richard Teng, appointed to oversee Binance’s regional markets outside the U.S. in June, has been announced as CZ’s successor, stating his serious approach to his new role by stepping into the world’s largest cryptocurrency exchange by volume.
Over $3 Million Trades Liquidated Within an Hour
Binance has faced multiple bouts of regulatory squabbles in 2023, triggering a bearish reaction among crypto investors trading BNB, the native coin of the Binance ecosystem. Within an hour of the report, $3 million on BNB Long positions had been liquidated, signaling a bearish effect on the BNB price.
The Total Liquidations chart tracks the number of trades closed, liquidated, or wiped out within a given period. A significant spike in LONG liquidations during a major news event is an indication that investors are anticipating a prolonged negative fallout, putting BNB price at risk of a Long Squeeze.
Funding Rates Drop as Investors Brace for Pain
In further confirmation of the bearish stance, BNB Funding Rate has entered a sharp decline. The decrease in BNB Funding Rates means most investors anticipate that prices and market liquidity will decline further in the coming days. BNB is currently trading at $240 at press time. But if the Funding Rate slides into negative values, the bears could effectively seize control of the market and force a BNB price downswing closer to the $200 mark.
Hot Take: BNB Price Hangs in the Balance Following CZ’s Exit as CEO
Binance Coin (BNB) price dropped 10% following Changpeng Zhao’s departure as CEO, creating a bearish effect on the BNB price. Investors brace for further pain as Funding Rates drop and $3 million trades get liquidated within an hour. However, BNB’s new CEO assignment could trigger a market rebound, providing an opportunity for bullish traders to swoop in and buy the dip.
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