BNB token surges to record high as Binance co-founder begins jail sentence

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10th June 2024 – (New York) The BNB token, a cryptocurrency associated with Binance and its co-founder Changpeng Zhao, has experienced a significant surge, reaching a record high during the first week of Zhao’s four-month jail sentence in the United States.

This rally highlights Zhao’s distinction as the wealthiest individual to serve time in a U.S. federal prison. Zhao recently reported to a California prison to commence his sentence for failing to adequately safeguard the world’s largest cryptocurrency exchange against money laundering.

BNB’s price soared to a peak of US$717.48 on Thursday, propelling its market capitalisation to US$109 billion, according to CoinGecko data. The token has more than doubled in value since the beginning of the year.

The upward trajectory of BNB mirrors the success of Binance itself. The exchange’s total assets have surged from approximately US$80 billion in early January to US$125 billion presently, solidifying its dominance despite a challenging period last year, when the company paid a historic US$4.3 billion fine to settle a case with U.S. authorities.

BNB holders benefit from trading fee discounts on Binance, and the token is also utilised for fee settlement on the BNB Smart Chain, a popular blockchain for crypto applications, including games and exchanges.

BNB’s recent rally was anticipated by derivatives market trading patterns in late May, with increased spot demand observed in June and consistent buying surpassing selling between 2nd to 5th June, according to Kaiko analyst Dessislava Aubert.

While BNB is traded on multiple centralised exchanges, Binance remains responsible for 85% of its global trading volume.