• BNB prices plummeted allegedly following an SEC investigation into the token sale.
• The SEC investigates whether Binance violated the law when BNB sold securities in 2017.
• BNB currently has a price tag of $282.94.

Binance Holding Ltd. is being investigated by the US Securities and Exchange Commission. The BNB Coin of Binance’s price indicates that it has gone red in the intraday.

The SEC investigates whether Binance violated any law when it sold BNB tokens as part of its Initial Coin Offering in 2017 (ICO). Bloomberg reports that an investigation has begun to examine the origins and use of Binance’s BNB token. SEC teams are investigating whether the ICO was a sale of securities which should have been recorded with the Commission.

1 Day Trading Chart BNB/USDT (Source: Trading View).

BNB’s price crashed in recent hours. The coin dropped more than 8.7% over the previous 24 hours and 10.6% within seven days. BNB’s current registered price is $282.94, according to CoinMarketCap. Notably, crypto markets worldwide are already falling by 5.4%. BTC is now at $29,000 while ETH has fallen 6.9%, with a current price of $1.758.7. The current price is closer to $265 than it was at support. BNB could move above that level and the price may crash again.

To expect a bearish tendency, BNB must at minimum break the $338 resistance level. The coin will likely reach $413 on May 5 if this occurs, which would be a very high price considering the market crash.

There is another important case, the SEC probe. The regulatory team claimed that Ripple Labs was selling XRP tokens, without complying with securities regulations. DeFi token also came under scrutiny by the SEC.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. This article is not intended to be used as investment advice. CoinQuora urges users to conduct their own research prior to investing in cryptocurrency.

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