BNB SCAM OR LEGIT?

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Blockchain247

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Founded in 2017 BNB or the Binance Coin is the cryptocurrency native to Binance Exchange that can be used for trading on Binance cryptocurrency exchange. Until now, there are still many bad rumors surrounding this currency that make many users feel unsafe to invest in. Is BNB the best cryptocurrency course out there or Is It A Scam? If you want to know about this token in detail then continue reading this BNB review.

Why do traders think that BNB is a scam?​

Binance Coin is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. As of Q2 2022, Binance Exchange is the largest cryptocurrency exchange in the world, with a volume of $7.6 billion.

Binance was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.

No one can say with certainty how BNB will perform in the future and whether it’s capable of sustaining its current performance or not. One of the biggest cons of BNB is that its progress is directly linked to the reputation of Binance exchange.

It means that it’s very difficult for this cryptocurrency to move forward on its own and any effect on the exchange directly affects the BNB reputation. Many crypto critics and experts suggest that the regulatory bodies in China can affect the BNB token in the long run.

Moreover, Binance has launched a dedicated exchange for users from the US, and the relationship with that platform is also a complication that can also affect US users.

BNB Team

On May 13, 2021, Bloomberg reported that Binance Holdings is under investigation by the Justice Department and Internal Revenue Service. According to the report, laundering and tax sleuths have probed individuals with insight into Binance's business.

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” Binance spokeswoman Jessica Jung said. “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”

BNB Criticism and Legal Issues​




Since its inception, Binance has faced multiple criticism and legal issues. Other than that, just like any other cryptocurrency, BNB has also faced criticism because of its volatility and decentralized nature.

Volatility​

Volatility is one of the biggest challenges facing all cryptocurrencies, including BNB. After growing by hundreds of percent, it can easily lose 30-70% of its capitalization. Many investors find these price movements too risky.

Binance Issues in the US​

According to the recent news, Binance is under investigation by multiple law enforcement agencies. The United States Internal Revenue Service and Department of Justice are currently investigating Binance Holdings Ltd. The investigation on Binance is being done because of the suspicions that people are using the platform for tax evasion and money laundering.

Binance Holdings Ltd has responded to this issue by saying that it’s taking the investigations done by the US very seriously. The platform has also said that it’s willing to engage and collaborate with the authorities in order to resolve the issue as soon as possible.

Illegal Use​

Perhaps the biggest problem associated with all types of cryptocurrencies, especially the major ones, is their use in criminal activity on the dark web. Cybercriminals only use cryptocurrencies, including BNB, to buy illegal items such as weapons, drugs, stolen goods, and more.
Now that you have reached almost the end of this review. Is BNB A Scam? Leave your impressions about BNB at the comment section down below.
 

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