The FTX fiasco does not appear to settle so soon as the aftermaths of the collapse appear pretty huge than expected. It started with Binance letting off all the FTT tokens worth more than $500 million which ignited a fresh FTT price plunge. After creating a ripple of fallouts with Genesis, BlockFi, etc, now the wave has stuck back to Binance. No sooner than it halted the USDC withdrawals, the ‘Binance FUD’ began to circulate.
Traders just began withdrawing from Binance as they feared as part of the past events with Terra & FTX. Further, the Proof-of-Reserve which was promoted by the Binance CEO, CZ to maintain transparency also backfired on the platform as the auditors claimed the report was not satisfactory. This impacted the price of the native token BNB which is trading below $300 with a huge drop of nearly 25% in the past few days, marking the lows at $220.
The markets have turned extremely bearish over Binance right now which was multiplied by the Fed Chair’s hawkishness and ongoing SBF trail. Due to this, the traders have expressed their desire to sell as huge negative mentions w.r.t Binance prevailed, socially. This is enough to keep the markets consolidated or captivated for a prolonged period.
Source: https://coinpedia.org/news/bnb-prices-slashes-by-20-will-binance-survive-the-fud-attack-or-will-the-ftx-fiasco-repeat/