Binance U.S. Partnership News Puts BNB Under Question, Coin Drops 101
Source: iStock/akinbostanci

Major cryptocurrency exchange Binance confirmed it will enter the U.S. market via partnership with a local company, BAM Trading Services. Now, one of the main questions being discussed is what will happen with Binance Coin (BNB), the native token of the exchange, after the Binance.US launch.

“Binance will license its cutting-edge matching engine and wallet technologies to its U.S. partner BAM to launch Binance.US, acknowledged by its recently approved FinCEN [The Financial Crimes Enforcement Network] registration on June 11, 2019,” the exchange said, adding that they’ll share more information “at a later date.”

Details about BAM Trading Services are scarce. It seems that the company does not have its website while their Twitter account was created in April 2019 and has only one tweet and it’s about their partnership with Binance.

Meanwhile, BNB, which is 7th largest coin by market capitalization, registered the largest drop among the major coins in the past 24 hours as the cryptoverse is discussing how the expansion in the U.S. will affect the coin. At pixel time (06:11 UTC), it’s down by 5%.

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Economist and trader Alex Krüger argues that “Binance may move U.S. users (reportedly 25-30% of total) from to Binance US.” According to him, if there is no BNB on Binance.US, the demand for this coin will drop.

Others have also voiced their concerns:

While Binance was not available for immediate comment, their CEO, Changpeng Zhao, tweeted earlier that “there will be a few restrictions on accompanying this [launch in the U.S.]”

“But some short term pains may be necessary for long term gains,” he added without specifying.

Binance is already available for the U.S. users, however, by launching a local exchange they hope to strengthen their competitiveness.

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