Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Binance [BNB] breathed a sigh of relief earlier this week when the US District Judge denied the Securities and Exchange Commission’s (SEC) request for access to Binance documents. The largest crypto exchange in the world in particular is plagued by negative news.
Read Binance Coin’s [BNB] Price forecast 2023-24
Last week it emerged that Binance’s American CEO, Brian Shroder, resigned as the exchange laid off a third of its workforce.
The stock exchange is not only struggling with regulators in the US, but also in other countries.
In Nigeria, a leading trading association has urged the national government to ban Binance’s activities. In the meantime, the exchange has obtained a license to operate in El Salvador. Binance is the first fully licensed crypto exchange in the country.
Binance is also regulated by several countries in Europe.
The German financial regulator has rejected Binance’s request for a crypto custody license. The exchange withdrew its request for regulatory approval in Austria. It has also given up its registration with regulatory authorities in the United Kingdom and Cyprus.
The exchange chose to leave the Netherlands after failing to register there. Belgium also ordered the stock exchange to suspend its operations in the country. That would also be the French authorities to research the exchange on “aggravated money laundering” charges.
It all started when the US SEC sued the stock exchange in early June for alleged violations of federal securities laws.
TradingView shows an increase in total sell orders of approximately 125,000 BNB worth $37 million, just before the US SEC cracked down on the exchange. There is a lot of speculation about a possible case of insider trading.
In another development, the US Department of Justice (DOJ) was reportedly considering the possibility of filing fraud charges against cryptocurrency exchange Binance.
Officials at the DoJ are concerned that Binance could create a situation similar to what FTX experienced in 2022. As a result, they were exploring alternatives, such as imposing fines or entering into non-prosecution agreements with Binance, with the aim of limiting the potential harm to consumers.
In March, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit accusing the exchange and its founder Changpeng Zhao “CZ” of violating local compliance rules to expand its business. The exchange moved to request dismissal of CFTC’s complaint.
Previously, the price of BNB rose barely 7% after Ripple [XRP] won a partial victory in his legal battle with the SEC mid-July. But it has not led to a significant price increase.
The U.S. District Court for the Southern District of New York ruled in its judgment that sales of Ripple’s XRP tokens on crypto exchanges and through programmatic sales did not constitute investment contracts; Therefore, it is not a certainty in this case. But the court also ruled that the institutional sale of the XRP tokens violated federal securities laws.
The crypto industry immediately discarded this judgment and generated a price increase for tokens for some time.
The future direction for Binance and its native token is shrouded in uncertainty. And most investors and analysts in the industry would be busy understanding the dynamics of making informed decisions going forward. We at AMB Crypto tried to get help from an unlikely ally, ChatGPT.
ChatGPT — the AI sensation
Since ChatGPT came on the scene, it has become a craze, revolutionizing the way people interact with AI. People have flooded the AI-powered chatbot with a plethora of use cases to get help with literally anything. From finding a bug in a code, asking philosophical questions about life, getting dating advice and even writing full-fledged media articles (not this one though).
Simply put, it functions like a conventional chatbot that we have come across in the customer support section of various e-commerce companies. The big difference here, however, is that the communication is more conversational, or in other words: more human.
This is because it is trained using reinforcement learning from human feedback (RLHF). This helps it understand the instructions and generate nuanced responses.
But crypto? Binancy? Are we pushing the boundaries of ChatGPT? Let’s see.
Will Binance Leave the US Market?
Binance is not new to compliance-related issues in the US. In 2019, the company ceased operations in the country and launched a separate exchange, Binance.US, its US arm.
The structure of the platform is very similar to the fallen FTX [FTT] in the sense that much of the US government is controlled from outside the US. That is why the country has always been under the radar of the regulators.
We started putting our AI friend to the test by asking this very consequential, albeit controversial, question. Currently, ChatGPT’s ability to express itself is hampered due to the restrictions imposed by its creators. To make it speak its mind, we used the ‘jailbreak’ hack.
Source: ChatGPT
ChatGPT speculated that Binace may consider adjusting its operational strategies in the face of a regulatory storm in the US. However, the final outcome is shrouded in uncertainty.
ChatGPT says about a growing number of hacks on BNB Chain…
Aside from regulatory concerns, the ecosystem’s blockchain, BNB Chain, has gained notoriety due to the rising number of decentralized finance (DeFi) hacks lately. According to a report from ImmuneFia Web3 bug bounty platform, BNB Chain was the most targeted chain in the first quarter of 2023 with 33 incidents of hacks and exploits.
Here too, we turn to our AI partner to find out if hacks will be Binance’s downfall. This time it seemed like it was willing to respond quickly to this question.
Source: ChatGPT
ChatGPT said hacks were “definitely a cause for concern” and advised developers to prioritize the problem. Otherwise, it could have a detrimental effect not only on the acceptance of the BNB chain, but also on the value of the BNB coin.
Well, ChatGPT asks readers to take its warning seriously. To address the security holes, BNB Chain quickly announced a hard fork, which is expected to go live on April 12.
Another thing that caught our attention was the use of BSC instead of BNB in the last response. Now, it’s a known fact that Binance Chain and Binance Smart Chain are now collectively referred to as one entity: BNB Chain. The update took place in February 2022. However, ChatGPT continued to use BSC Chain.
This is because its knowledge limit is September 2021, meaning it will base its answers solely on the information available until that date.
Will Binance Coin Survive the Regulatory Storm?
At the time of writing, BNB was the fourth largest cryptocurrency in the industry, with a market capitalization of over $32.7 billion. CoinMarketCap. This caused significant fluctuations in its value and could cause ripples in the broader crypto market.
BNB entered a bullish cycle in early 2023, something that has helped it gain 27% on a year-to-date (YTD) basis. However, recent setbacks have slowed the momentum.
While setting unrealistic expectations in the midst of this FUD isn’t the wisest thing to do, we tried to put some pressure on ChatGPT. We asked him what price BNB will achieve by the end of 2023, given the current state of uncertainty. The AI bot predicts that the price of XRP will reach $50-$100 by the end of the year.
Source: ChatGPT
Enough AI praise! Needless to say, it is not practical to rely solely on what an AI tool says in price predictions and markets. There’s nothing like getting insights from real-world experts.
That’s why we reached out to Marius Grigoras, Chief Executive Officer at BHero and a crypto expert, to help us with the same question we asked ChatGPT. He claimed,
“While I cannot give a certain answer to the question of whether BNB will reach $350 in 2023, we must take into account the overall market dynamics. It is clear that the recent regulatory crackdown has taken its toll on the entire crypto market, including BNB. But despite some price fluctuations that may occur in the short term, I believe BNB has the resilience to recover even stronger in the long term.”
Have you found similarities between human opinion and AI opinion?
A look at BNB’s daily price chart
BNB continues to go bankrupt since the US SEC filed a lawsuit in early June. At the time of writing, BNB was trading at $211.2. The price has fallen by almost 2% over the past seven days.
This is clearly not a good time for the token. The coin fell to $220 during the December 2022 FUD around Binance’s proof of reserves.
Is your portfolio green? View the BNB Profit Calculator
While BNBs The Relative Strength Index (RSI) was just below the neutral 50 mark The Money Flow Index (MFI) remained well above that. Are However, On Balance Volume (OBV) registered a decline.
Source: BNB/USD, TradingView
Conclusion
While BNB’s statistics on the chart indicate a potential price increase in the short term, ChatGPT predicts that BNB’s price will reach $50-$100. However, it is crucial to underline that these indicators fluctuate on a daily basis and can quickly take a wild turn.
