If you were hoping to make some extra money after the cryptocurrency market was on the green for a few days, it happened once again. Starting with Bitcoin, which has fallen below the $8,500 mark, just one day after surpassing $9,000, the entire market has dropped $25 billion.
Analysts claim that this was caused by the concept known as FUD (fear, uncertainty, and doubt) surrounding the trading platform Binance.
It all started with a warning
According to CCN, just a few days ago, Japanese media outlet Nikkei revealed that Binance was warned by the Japanese Financial Services Agency for serving local investors on the platform.
The exchange, which is currently the largest, operates through the entire world and has millions of users, including in Japan.
Nikkei reported that specific criminal charges will be filed against Binance if they continue operating in Japan. Obviously, the misinterpretation of the situation created a lot of panic on the market.
However, CEO Changpeng Zhao immediately released a statement, reassuring users and investors that the initial report issued by Nikkei was irresponsible and that their team is communicating with FAS for a while.
“Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them,” Changpeng Zhao wrote.
“No need to worry. Some negative news often turn out to be positive in the long term. Chinese have a proverb for this. New (often better) opportunities always emerge during times of change,” he added, in his attempt to re-establish the market.
The market dropped, but Binance could benefit from it
After this entire situation was made public, the market basically collapsed, dropping $25 billion. For the moment, we can’t tell if this is the exact reason or just a coincidence, but it once again proves that we’re talking about volatile assets.
Finally, let’s not forget that this could be a positive moment for Binance, giving them the opportunity to operate legitimately, as a regulated financial service provider in Japan.