BNB To Drop to $5; Analyst Claims as Binance Co-Founder Pleads Guilty

• WhaleWire alleges the imminent bankruptcy of Binance as co-founder ‘CZ’ pleads guilty and pays the $4.3 billion fine
• The crypto analyst foresees $BNB dropping down to $5
• The crypto community backs CZ’s ‘derisking’ efforts

WhaleWire, a crypto analyst, wrote to X (formerly known as Twitter), predicting the forthcoming bankruptcy of the largest cryptocurrency exchange, Binance.

The self-proclaimed “original crypto whale” foresees Binance’s exchange token BNB dropping to $5. With Binance Co-Founder Changpeng “CZ” Zhao allegedly busted for his crimes, WhaleWire believes that without “fraud or price manipulation,” Binance’s entire business model will be destroyed.

WhaleWire added that all this will “ripple across the entire market in due time.” This statement came after CZ agreed to plead guilty and pay the $4.3 billion settlement deal with the U.S. Justice Department.

Following the news of CZ’s guilty plea , the value of BNB plummeted sharply by 9.5% after a couple of hours. Moreover, crypto analytics company Kaiko reports an approximate 50% to 66% decline in Binance’s daily trading volume. It reached around $10 billion, up from last year’s average volume of $20 billion to $30 billion.

Further, some Binance proponents have expressed dissatisfaction with WhaleWire’s post. An account user, “warchild” ( @XpaganatorX ), calls the reporting “another piece of garbage ‘news’.” A DeFi news writer, using the handle “Uchope” ( @uc_yuccie ) notes that WhaleWire “has been a stern critic” of Binance and “has since predicted CZ’s fall.”

Ryan Selkis, the founder and CEO of blockchain analytics firm Messari, highlighted Binance’s “derisking” effort. He emphasized that this move is among the “biggest catalysts” in the crypto space.

Zhao has recently been released on a $175 million bond and could be allowed to return to Dubai, provided he returns to the U.S. two weeks before his sentencing on February 23, 2024.