In the past couple of days, the trading prices of two tokens issued by the BNB Chain seem to be performing well. Their performance is somewhat better than the rest of the major cryptocurrencies.
Nowadays, it is only a matter of luck for any cryptocurrency to experience a boost in its value. Even the likes of Ether and Bitcoin are finding it hard to breathe in the heavily bearish climate.
BNB and BUSD are Performing Well
While the situation is not good for the rest of the cryptocurrencies, Binance USD (BUSD) and Binance Coin (BNB) seem to be performing well.
It is worth noting that in the past and the earlier part of the running week, most of the major cryptocurrencies were surging except for BNB.
It was because of the “fear, uncertainty, and doubt” (FUD) factor that had raised concerns among the investors.
The Binance exchange has been under a great amount of pressure but it is a topic left to discuss after talking about the BNB’s trading performance.
Is the FUD Over?
With the prices of both BUSD and BNB moving into the green territories, the investors are now eager to understand if the FUD is over or not.
This is a question that will be answered in the upcoming days because so much is yet to unravel about the Binance exchange in near future.
BNB is Performing Well
The price chart viewed from CoinMarketCap shows that in the past 24 hours, the value of BNB has surged by 6.94%.
On the other hand, the value of the BUSD has remained intact as the stablecoin has remained stable. The report shows that the BUSD has not lost its peg with the USD.
It was last week when the investors started to fear the future of the Binance exchange. The fear was evident from the downward performance of the Binance Coin.
A look at the past 7-day performance of BNB shows that it is still 15.20% negative. This gives a clear picture of how badly the token had performed due to the rising Binance FUD.
The FUD is Somewhat Going Away
Although not entirely but it seems that the Binance FUD has started to fade away. This is because the trading price of BNB has surged and it has also managed to help boost the values of ETH and BTC.
The trading volume has started rising on the Binance exchange, and the major cryptocurrencies are also experiencing surges.
The trading prices of ETH and BTC have also surged by 5.94% and 6.32%. Apart from ETH and BTC, BNB performed well and it was able to surge to $252.34, hitting a daily high.
Just before the price of the asset had surged, it was hovering at a low of $230.61.
So far, it is a good sign not only for BNB but for the Binance exchange as well that the investors are returning to business as usual.
However, there is still a lot of clarity required on the Binance FUD matter, before the investors can really decide what they have to do in the future.
Main Cause behind Binance FUD
Following the crash of the FTX exchange, the Binance exchange, which has become very controversial lately, proposed a “Proof-of-Reserve” (PoR) consensus.
The purpose of the PoR was for each crypto firm to provide transparency on the funds they are holding. It was a matter of proving that the crypto platforms have collateral to support their holdings.
The exchange had Mazars, an audit firm from South Africa, perform an audit for its proof-of-reserve. The Mazars audit report showed Binance’s Bitcoin collateralization is 101%.
The audit report shared by Mazars raised many concerns among other crypto firms and investors in the market. They claimed that as per their research, Binance’s Bitcoin collateralization should be 97%.
This raised many concerns over the audit firm’s credibility and since then, Mazars has removed the audit report for Binance from its website.
Although the situation should have become more tense and alarming for the investors, they have started coming back to Binance.
It cannot be confirmed what the investors have in mind about Binance and how they may react in near future.