The trading price of the Binance Coin (BNB) has experienced a major pull against the USD in recent days. The token has been drifting lower due to the risks and concerns among the users involving the exchange.
It seems that the ecosystem of the Binance exchange has become less credible in recent weeks. This has led to the demise of the BNB token as investors are finding it suitable to leave the platform than stick with it.
With more users leaving the side of the Binance exchange and its ecosystem, the utility of the BNB token has been declining. In addition to that, the adoption level of the token has been falling.
This has resulted in a loss of trust and confidence in the BNB token, bringing its trading price down. The investors are concerned about the future of the token and therefore, they are taking calculated steps when investing in BNB.
With the majority of the users losing their confidence in the BNB token, the value of the token is destined to face a downfall.
Binance Coin is facing a Downtrend
In the latest sessions, the value of the BNB token has dipped tremendously. The value of the token has been driven below the $290 per BNB mark.
This is mainly because of the increased outflows from the Binance exchange. The value of the token below the $290 mark is a major loss for the token and the entire Binance ecosystem.
The low level that the token currently witnesses is what it had witnessed back on February 13 of the ongoing year.
According to the statistics, the value of the token has fallen by 14% against the highest trading level it had hit in the running year so far.
Outflows Keep Rising for BNB
In the past few days, the outflows of cryptocurrencies have continued taking place from the cryptocurrency exchange.
It is extremely concerning for users to see the largest crypto exchange in the entire world to be under a great level of scrutiny.
The US regulators have gone after Binance, which has made the users very concerned about the future of the exchange.
Investors are constantly leaving the platform, which has increased the outflows.
Major data analytics firms from the crypto industry have shared information about the Binance outflows they have recorded recently.
As per their data, in a matter of the past 24-hours, the exchange has seen $89.59 million worth of funds outflow from its system.
The number keeps growing larger and more alarming if the data is gathered for larger periods. The past 7-day data shows that more than $684 million worth of funds have moved out of the exchange.
As for the past 30 days, the exchange has witnessed an outflow of over $2.3 billion.
Other Exchanges are Witnessing Inflows
Contrary to the recent happenings with Binance, other exchanges are recording significant inflows into their accounts.
It seems that the users moving funds out of Binance are moving them to the other exchanges that are currently under no threat from the regulators.
The report shows that the OKX has recorded an inflow of more than $193 million in the past 7 days. In the past 30 days, the inflow recorded on the exchange was $210 million.
Similar to OKX, the inflows have continued rising in all major exchanges. The exchanges that have recorded the highest inflows include Huobi, Crypto.com, and Bitfinex.
Reason Why Binance is Losing Funds
The reason behind the exchange losing funds is that the exchange has come under great scrutiny from the regulators.
The American watchdogs, especially, the US SEC have gone after the exchange. They are blaming Binance and the independent exchange, Binance US, have been working much closer than they ever did in the past.
The allegations made by the US SEC are against Binance CEO’s claim that Binance US operates as a completely independent entity, and has no link with Binance whatsoever.