Binance Coin (BNB) is reeling under pressure as the cryptocurrency platform’s CEO CZ resigned from his position after the SEC initiated legal proceedings against the firm. Richard Teng is now appointed as the new CEO and will handle all the dealings of the global cryptocurrency exchange. BNB Coin plummeted double digits after CZ’s resignation and remained in the green for three consecutive days. Though BNB turned green on Wednesday, it could not sustain for long and dipped in price the same day.
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The development also dragged the cryptocurrency markets down as Bitcoin and Ethereum fell 4% each, respectively. However, BTC and ETH recovered on Thursday and are now on track to print new weekly gains. Nonetheless, the spotlight on Binance remains intact and the legal proceedings could impact BNB Coin’s price.
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BNB: Should You Buy Binance Coin Now?
Binance’s native token BNB Coin is currently trading around the $234 mark on Friday. BNB had reached a weekly high of $266 before CZ’s resignation and has been down by $32 since then. The crash was well-managed as BNB showed strength despite negative news about the SEC initiating legal proceedings against the exchange.
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However, the ordeal is yet to end as the SEC and Binance have many legal battles up their sleeves. The move puts BNB under constant pressure in the coming months making the chances of a price dip rise.
Therefore, BNB has more chances of plummeting in price as the legal battle with the SEC is yet to come to an end. Taking an entry position now is risky as the markets have more to react to negative news.
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In conclusion, it is advised to buy the dips on Binance Coin and accumulate the token at its lows. It allows buying BNB at discounted prices and could deliver returns when the SEC lawsuit is settled.