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Binance’s native token BNB hit a record value as the exchange’s co-founder Changpeng Zhao began a US prison term, Bloomberg reported.
BNB’s price jumped to US$717.99 as of June 7 from a US$620.49 low on June 3, taking its market value to US$109 billion. The price has since cooled down to US$666.95 as of writing.
Binance users get trading fee discounts by holding BNB. Also, BNB settles transaction costs on BNB Smart Chain, a blockchain many cryptocurrency apps use.
Additionally, Binance’s overall asset value soared from US$80 billion around the start of 2024 to US$125 billion on June 9. Dessislava Aubert, an analyst at crypto market analytics company Kaiko, told Bloomberg that BNB’s price jump followed the strong trading activity in the BNB derivatives market since late May, with buying outpacing selling in early June.
Over a dozen centralized exchanges support BNB trading. Still, Binance generates 85% of global BNB trading volume.
Zhao went to a California prison on money laundering charges and agreed to a US$50 million personal fine.
Zhao’s estimated net worth is about US$38.5 billion, having grown by US$4.1 billion year to date. In a 2021 interview, Zhao disclosed his wealth mostly comprises BNB, and he owns a significant Binance stake.
In BNB’s 2017 initial coin offering, the Binance founding team including Zhao received 80 million tokens valued around US$56 billion today.
See also: US civil suit against Binance.com: What’s the real motivation?
Editing by Dhania Putri Sarahtika
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