BNB token sold heavily before SEC lawsuits.

Timing is crucial in trading, and it seems that certain traders strategically placed sell orders for BNB tokens just before the SEC’s major crackdown on Binance crypto exchange on June 5th. According to data from TradingView, a surge in roughly 125,000 BNB sell orders worth $37 million hit Binance’s BNB/USDT order book at 11:45 p.m. UTC on June 4th and 1:45 a.m. UTC on June 5th.

Coinalyze reported that BNB’s open interest, which is the total number of outstanding derivative contracts held by investors, also increased by nearly $30 million in the first nine hours of June 5th, before news of the SEC’s allegations against Binance was released. An increase in open interest indicates that new traders are entering the market and creating new positions instead of closing existing ones.

After the SEC’s crackdown against Binance on Monday, the price of BNB, the native token for the Binance ecosystem, dropped more than 9% from $300 to $272 in just one hour. Traders who predicted that the price of Binance’s BNB token would decrease before June 5th at 11:15 a.m. have made significant profits from the price action of BNB following the reveal of the SEC’s lawsuit against the largest crypto exchange by trading volume.

An SEC spokesperson did not respond to a request for comment on the trades made before the SEC lawsuits against the crypto exchange. This article was edited by Aoyon Ashraf.

Read More: Binance.US Suspends Use of Fiat as Legal Troubles Mount

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