Richard Teng, the new CEO of Binance following Changpeng Zhao's departure, has outlined his plans for the exchange, pointing out that he has support from both CZ and Binance leadership. Teng aims to navigate regulatory challenges while promoting the adoption of Web3 technologies. Meanwhile, CZ faces potential legal consequences, with the possibility of a 12-18 month sentence, though his legal team may seek alternatives. Despite this, Binance Coin (BNB) charts show potential for a bullish breakout, but risks remain as it could test key support levels. Nevertheless, technical indicators on BNB’s chart suggest a possible price bottom.
What is Next for Binance
Richard Teng, the former global head of regional markets, and now the CEO of Binance after Changpeng Zhao (CZ) stepped down on Nov. 21, announced his intention to lead Binance towards growth and development in a blog post yesterday. Teng emphasized that his appointment as CEO had the support of both CZ and Binance's leadership, and it comes as part of an agreement with United States officials. This move is important in the eyes of many in the cryptocurrency industry as it reflects Binance's ongoing efforts to navigate regulatory challenges in the United States while still ensuring that users get what they need from the exchange.
In his blog post, Teng also expressed the desire to encourage growth and promote the adoption of Web3 technologies. He assured Binance's customers and the crypto community as a whole that they can expect to hear more from him soon regarding the exchange's strategic direction and plans for the future. In his own words, Teng stated, "I am eager to jump headfirst into my new role and know there will be many more opportunities for me to share my thoughts with the community through blogs like this one, through my social media accounts — Twitter, LinkedIn — and through the many industry conferences and events around the world."
Whatever Teng’s plans are for the exchange, it already seems to be working. Shortly after the U.S. settlement with Binance, the blockchain analytics firm Nansen reported that there was no apparent "mass exodus of funds" from the exchange in the first 24 hours after CZ decided to step down. In fact, Binance's total holdings increased to more than $65 billion, which suggests that people trust the exchange despite the changing leadership and regulatory challenges.
CZ Facing a Long Road Ahead
The former Binance CEO is still facing ongoing legal challenges, with a recent court filing suggesting that his troubles are far from over, despite his guilty plea to violating U.S. Anti-Money Laundering regulations in a settlement with the U.S. Department of Justice (DOJ). CZ's sentencing is set for Feb. 2024, but he is currently contesting the government's attempts to prevent him from returning to the United Arab Emirates, where he is staying with family while awaiting sentencing.
In a filing from Nov. 24, authorities indicated that Zhao might face an even harsher punishment than originally expected. According to the filing, the defense claims that,” Mr. Zhao faces merely a 'brief' sentence and has no incentive to flee. The reality is that the top end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years."
Former U.S. Securities and Exchange Commission official, John Reed Stark, stated that CZ could receive a minimum 12-18 month sentence in a minimum-security prison under U.S. sentencing guidelines. However, it is very likely that CZ's legal team will seek to avoid jail time altogether, instead aiming for a combination of prison time, house arrest, and probation. On the other hand, Stark also believes that if the DOJ does not secure a sentence for CZ that serves as a deterrent against any future money laundering activities in the crypto world, a plea deal like this could backfire on the DOJ.
However, seeking a longer jail sentence for CZ may not be a straightforward task for the DOJ. According to Stark's analysis, government officials still need to present more substantial evidence implicating the former CEO in the criminal activities he has been accused of. Stark stated, "Hopefully, the DOJ has got something up their sleeve, or perhaps the Binance monitoring and other remedial requirements will reveal more egregious and chargeable crimes." Currently, CZ is released under a $175 million bond, which requires him to return to the U.S. 14 days before his sentencing date, scheduled for February of 2024.
BNB Breakout Ahead?
A falling wedge has formed on the daily chart for BNB, which could indicate that a breakout to the upside will occur in the next few days. This bullish pattern could lead to the altcoin flipping the $230 resistance level into support if it is validated. Thereafter, a daily candle close above this major barrier will open up a pathway for BNB to continue rising. In this bullish scenario, the cryptocurrency may reach as high as $240 in the short term.
There is, however, still the risk that BNB’s current negative trend will carry on in the next couple of days. This could lead to the altcoin testing the next key support level at $220. If bulls do not identify this level as a buy opportunity, then sellers may force BNB below this mark. Continued sell pressure could then drag BNB down to $210 through the course of the following week.
Binance Coin / TetherUS 1D (Source: TradingView)
Technical indicators on BNB’s daily chart suggested that sell pressure has cooled off a bit. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators hinted at a potential price bottom.
The slope of the MACD Histogram has leveled off. However, the MACD line was still bearishly positioned well below the MACD Signal line. Simultaneously, the RSI line was positioned bearishly below the RSI Simple Moving Average (SMA) line. A potential confirmation of a bullish reversal could be when either the MACD line starts closing in on the MACD Signal line, or the RSI line starts rising towards the RSI SMA line.
