Crypto exchange Binance and its CEO Changpeng Zhao are making headlines again as news of the company’s acquisition hit the industry.
according to new news, Binance acquired a 41% stake in Korean crypto exchange Gopax. The deal was originally scheduled to be revealed last year, and involved Binance buying a stake from Lee Jun-hang, Gopax’s main shareholder.
BNB, Binance’s native token, took the news to heart with a weekly gain from 5.5%. As of this writing, BNB is trading at $255, data from Coingecko shows.
Binance And South Korea, A Mixed History
This is not the first time Binance has entered into a business venture in Korea. In the period 2020 to 2021, Binance KR trading pairs and the hard death of service in the country has ended. This is because strict crypto regulation in the country.
Gopax was hit hard FTX collapsed. During this time, exchange have experience liquidity problems forced the Korean exchange to suspend payments.
With the start of Binance capital flowing into the exchange, we can expect Gopax to bounce back from last year’s disaster.
Image: Cryptopolitan
Binance, on the other hand, promise to comply with local regulations as the same partnered with the port city of Busan in August last year. This partnership will develop the city’s blockchain infrastructure for a city-powered future digital asset exchange.
What Does This Mean For BNB?
With almost no obstacles at the moment, this development should take place in the coming weeks as the acquisition is completed. With that in mind, Binance’s presence in South Korea will boost the company as a the main player in a centralized exchange market.
However, one cannot be too sure about the future. Almost a month ago, a Reddit post about the Binance audit is supposed to be open about the development.
Image: Business2Community
According to the post, the “audit” is not an audit but just an agreed upon procedure (AUP) that does not guarantee correctness. proof-of-reserve.
Crypto total market cap at $775 billion on the daily chart | Chart: TradingView.com
Not to mention now, that company in the fire from the SEC for aggressively trying to acquire Voyager Digital. Whether this acquisition pushes it or not, BNB bulls are ready to break the $281 price resistance level.
However, with tokens linked to Ethereum, we could see a decline in BNB if macroeconomic indicators show a worsening situation. Currently, BNB investors and traders should consolidate their profits at $252.
If the bears can return to the market, BNB can return to $240 for some reliable support. With the Consumer Price Index (CPI) data released next week, investors and traders should be prepared to deal with volatility as any movement in ETH will determine whether BNB will go up or down.
-Featured Image: CPA Practice Advisor