Binance-Linked Cryptocurrency BNB Hits Record High: What’s the Story Behind It?
The cryptocurrency market is once again making headlines, and this time the focus is on the Binance-linked token BNB. Over the weekend, BNB touched an all-time high of $1,083, shaking the entire crypto world. But the question is: what’s driving this surge? And how much is the news of Binance co-founder Changpeng Zhao’s (CZ) US presidential pardon fueling this surge? Let’s understand in detail.
What is the BNB token?
The BNB token, formerly known as Binance Coin, was launched in 2017 through an Initial Coin Offering (ICO). The money raised from this ICO was used to establish the Binance exchange. Since then, BNB has become an integral part of the Binance ecosystem.
This token is used for trading fee discounts, transaction settlements, and the Binance Smart Chain (now Build and Build Chain) ecosystem. BNB is now the 5th largest cryptocurrency by market capitalization, with a market value currently around $83 billion.
BNB’s Massive Rally Over the Weekend
According to Bloomberg data, the BNB token touched a record high of $1,083 on Sunday. However, a slight correction occurred on Monday, with BNB falling along with Bitcoin and Ethereum. Nevertheless, optimism remained in the market after setting a record.
Experts say there are two major factors behind this rally:
- Speculation about CZ’s US pardons
- Regulatory developments that could favor Binance
The Story of CZ and Pardons
Changpeng Zhao, Binance’s former CEO and one of the crypto industry’s biggest names, left his CEO post in 2023. He subsequently served a four-month jail sentence in 2024, as part of a $4.3 billion settlement deal with US authorities.
But all is not lost. CZ stated in a podcast that he was requesting a pardon from US President Donald Trump. This statement immediately sparked speculation.
Online betting platforms like Polymarket tracked the possibility of CZ receiving a pardon. On September 13th, the odds of a pardon reached 64% and remain at 50%. This means the market believes a pardon is possible.
Why is a pardon important for Binance?
If CZ receives a pardon from Trump, the situation will be quite positive for Binance. There are two major reasons for this:
- Trump Ties: According to reports, Binance has ties to World Liberty Financial Inc., a venture of the Trump family. This company has launched a stablecoin in which Binance was involved. If pardoned, the relationship between Trump and Binance could become stronger.
- Regulatory Relief: Recently, Senator Elizabeth Warren asked the US Justice Department whether Binance is complying with the terms of its 2023 settlement. If Binance finalizes a new deal, it could also receive relief from external compliance monitors.
Both of these factors are bullish signals for investors, which is a major reason for BNB’s price rally.
BNB Accumulation and Market Dynamics
According to CoinMarketCap data, listed accumulators currently hold approximately $560 million worth of BNB tokens, representing 0.4% of the total supply. This indicates that demand and supply dynamics are supporting BNB.
CZ’s Net Worth and Crypto Rich List
BNB’s rally has boosted not only Binance but also CZ’s personal wealth. According to Bloomberg data, his net worth is now around $54.6 billion, making him the richest person in the crypto industry.
Conclusion
BNB’s record high isn’t just a price action—it’s a reflection of how the crypto market reacts to political developments, regulatory news, and speculation. Changpeng Zhao’s pardon is currently in the realm of speculation, but the market has already factored that possibility in.
If the pardon happens, it could mark the beginning of a new chapter for both Binance and BNB. But if it doesn’t, a correction is natural. Currently, BNB remains a hot topic for crypto investors.