Binance founder and former CEO Changpeng Zhao (CZ) will soon be released from prison, according to an announcement from the US Bureau of Prisons (BOP). CZ’s return could have a major impact on the market given his pivotal role in the crypto industry.
Changpeng Zhao is expected to be released on September 29, giving traders 10 days to adjust their positions. With the crypto market facing uncertainty, some investors may be looking for opportunities around the event. Altcoin watchers may want to pay attention to five tokens that could react to CZ’s return.
Binance Coin (BNB)
Zhao's release from prison could create a potential price surge for Binance Coin (BNB). As Binance's native token, BNB is directly tied to the platform's success, and important events involving Binance leadership, especially CZ, can have a significant impact on its price.
For example, when CZ announced compliance with the US Department of Justice's request in November and appointed Richard Teng as CEO, the price of BNB fell 10% to $244 within an hour. Similarly, when Zhao was sentenced to four months in prison in April, the price of BNB recovered from $556 to $600.
With CZ's upcoming return, analysts predict that BNB could recover to $600. Currently, BNB is trading at $557.
Athena (ENA)
Ethena (ENA) is a synthetic dollar protocol that offers a crypto alternative to traditional banking through Internet Bonds. In March, ENA was featured as part of Binance's Launchpool program, allowing users to farm ENA by staking BNB and FDUSD.
With its key role in Binance’s coin farming initiative, ENA has continued to build credibility and attention among investors looking for alternative and profitable assets. With its integration into the Binance ecosystem, ENA could see some volatility as attention turns to CZ’s release from prison.
At the time of writing, ENA is trading at $0.2514, up more than 8% from Wednesday's open.
Renzo (REZ)
Renzo Protocol (REZ) was chosen thanks to Binance Labs, the venture capital arm of Binance, investing in Renzo Protocol in February.
“Renzo’s technology solves the complex problems of Liquid Restaking, allowing more users to participate,” said Yi He, co-founder of Binance and head of Binance Labs.
The protocol simplifies the staking process for end users, facilitating easy collaboration with EigenLayer node operators and the Authenticated Services (AVS). Similarly, its liquid restaking token, ezETH, allows users to access restaking while maintaining liquidity.
With the backing of Binance Labs, Renzo Protocol (REZ) has the potential to react strongly to CZ’s return later this month. At the time of writing, Renzo is trading at $0.03972, up nearly 10% from Wednesday’s open.
Arkham (ARKM)
Binance is also an investor in Arkham (ARKM), an “intelligence-to-earn” token that aims to improve blockchain transparency. In a blog post from November, Binance said its investment in Arkham aims to promote large-scale “on-chain intelligence” in the blockchain ecosystem.
While the exact amount of money Binance Labs invested in Arkham was not disclosed, news of the support sent the price of the ARKM token up 30%, reaching a peak market capitalization of $100 million on November 15. At the time of writing, ARKM is trading at $1.12, up 10% on the day.
Sleepless AI (AI)
Sleepless AI (AI) is a Web3 and AI gaming platform that combines both blockchain and AI technology to innovate the gaming industry. Similar to Ethena (ENA), users can farm AI tokens by staking BNB, FDUSD, and TUSD.
Sleepless AI's involvement in Binance's coin farming program makes it a token to watch. In the past 24 hours, its price has increased by more than 8%, trading at $0.4408.
Overall, the potential impact of Changpeng Zhao’s release from prison on Binance-related tokens opens up an attractive investment opportunity. This highlights the interconnectedness of the cryptocurrency market, with the potential for significant price movements for tokens within the Binance ecosystem.
