Is CZ’s release from prison at the end of the month a big plus for BNB?
As September 29, 2024 approaches, the focus of the cryptocurrency market has once again focused on Changpeng Zhao (CZ), the founder of Binance exchange (Binance).
As we all know, at the end of 2023, the dispute between Binance Exchange and the US legal system became increasingly serious. By 2024, founder Changpeng Zhao (CZ) was sentenced to 4 months in prison on April 30 while paying a fine of US$4.3 billion. He was sentenced to a term of imprisonment and later resigned as CEO of Binance.
Reports in August confirmed that CZ had been transferred from the FCI Lompoc II Prison in California to the RRM Long Beach Halfway House. This facility is classified as a "Reentry Management" field office, commonly known as a halfway house, and its functions are similar to those in Taiwan. "Foreign Service Supervisor".
According to the latest news, Changpeng Zhao is scheduled to be released from prison at the end of this month (9/29). Many people have begun to pay attention to the fact that this incident may have a significant impact on the market performance of $BNB.
So, will this event be a bullish factor for $BNB or trigger new market volatility? We decided to ask ChatGPT-4o, the most popular artificial intelligence language model at the moment, to hear what AI thinks CZ’s release from prison might have on $BNB.
CZ Out of Jail: Bullish Catalyst for $BNB
ChatGPT-4o believes that the return of CZ may have 2 effects on $BNB. On the one hand, investors may view his return as a signal of Binance’s future stability, thereby driving up the price of $BNB. But on the other hand, the market may also remain concerned about unresolved regulatory issues, which may put pressure on the price of $BNB.
Past experience shows that whenever Binance or CZ are involved in major legal issues, $BNB typically experiences short-term declines but then quickly recovers. For example: The price of $BNB fell sharply in 2021 when Binance faced regulatory scrutiny, but quickly recovered as market confidence in Binance was restored.
The impact of market sentiment
According to the analysis of ChatGPT-4o, Changpeng Zhao’s return may have the following impacts on $BNB price:
short term gain
If the market is positive about CZ’s return and no new regulatory issues arise, the price of $BNB could rise by 5-10% in the short term, topping $600.
regulatory concerns
If the SEC raises more regulatory questions after Changpeng Zhao is released from prison, the price of $BNB may be suppressed and may subsequently fall back to $570-$580.
overall market impact
$BNB’s price action also cannot ignore the impact of overall cryptocurrency market conditions, and if Bitcoin or other major cryptocurrencies rise or fall significantly during this period, the benefits of Changpeng Zhao’s release from prison may have little effect.
Overall, Changpeng Zhao’s release from prison may cause short-term price fluctuations in the $BNB market. Before and after Changpeng Zhao’s release from prison, that is, between September 29th and 30th, $BNB is expected to rise to US$570 to US$600. It is about 10% higher than today's $557, but subsequent trends must still consider regulatory issues and the impact of broader market trends.
