Binance Coin declines by 9.8% following news of geo-blocking US residents from its platform

Binance, one of the world’s largest cryptocurrency exchange, has undergone revamps on its platform which has significantly contributed to the valuation of its native token, BNB. The digital coin surpassed the market cap of $5 billion in a recent report. However, the glory was short-lived as the exchange dropped two bombs within 24 hours.

The Malta-based platform announced geo-blocking the US residents from the Bitcoin Global platform and also disclosed upcoming exchange, dubbed, Binance.US rollout in collaboration with BAM trading. Changpeng Zhao aka CZ, the CEO revealed the exchange would substantially provide “security, speed, and liquidity of” to users in North America.

The revised agreement that restricted the US residents to trade on the Binance Global platform may have triggered a decline in the price of the exchange’s in-house token, Binance Coin [BNB]. At press time, BNB depreciated by 9.80%, over the last 24-hours, holding a valuation of $31.56, on CoinMarketCap. The digital asset recorded a market cap of $4.40 billion and a trading volume of $747 million over the past 24-hours.

Additionally, BNB recorded a significant 22.8% trading at Binance via the pair BNB/USDT and 21.4% via BNB/BTC.

Source: TradingView

BNB had gained traction following the market recovery along with its peer altcoins. Bulls drove Binance coin’s price above $30 on the latter part of May which was propelled by the massive Bitcoin rally. The digital coin was performing fairly well despite a few minor lows. BNB continued to exhibit upward movement but was halted by the announcement.

The US makes up a significant amount of traffic of nearly 14% on Binance’s platform. Geo-blocking the country would not be prudent for the world’s leading exchange. As the development unfolded, many analysts have speculated that the reason behind the coincident of the two announcements is that the user base on the Binance’s platform is likely to be moved to the new Binance.US even as its launch date is not revealed yet.

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