Binance is one of the world’s largest cryptocurrency exchanges. They managed always advance and set the bar higher in their industry. From a strong security protocol to adding new services…it seems like they are here to stay. In a sudden move, Binance halts Stock Tokens. What happened to Binance Stock Tokens? Will Binance Coin take a hit and go lower?
This is Why Binance stopped Stock Tokens
One of Binance’s latest service additions was an interesting one. It consisted of listing real equity stocks on their platform, where users can simply buy them using cryptocurrencies. This service consists of listing “Stock Tokens”, and started in the same timeframe when Elon started pushing cryptocurrencies. To benefit from this trend, Binance listed TESLA stock along with Microsoft, Apple, and many other big names, available for purchasing and holding via cryptos. Stock Tokens are usually pegged to the value of the real stock on the equity market. Unlike regular stocks though, Stock Tokens can be bought in fractions.
Amid global fear of consumer protection in case of default and money laundering, Binance had increased pressure from Hong Kong’s Securities and Future Commission (HKSFC). The latter claimed that the company was not licensed to sell stock tokens to the public, a fact that might create a serious offense.
“Effective immediately, stock tokens are unavailable for purchase on Binance.com,” the exchange said on its website, adding it would cease all support for the products in October.
Will Binance Coin take a hit from unlisting Stock Tokens?
Binance Coin’s (BNB) recent price action was consolidating lately with the entire cryptocurrency market. The recent Stock Token ban didn’t seem to affect BNB as much as predicted. This is due to several factors, but most notably, the number of users on Binance who do use the Stock Token service might not be very high compared with other users who simply buy cryptos on the platform.
Today, BNB’s current price is around USD 306 and has been in consolidating around that area. In case the market continues to show bearish price action, BNB might fall towards the strong support of USD 212. Despite the latest uptrend from this latter area, the delisting of Stock Tokens might still take a toll in the coming trading days. If the number of Stock Token traders turns out minimal really minimal, the hit would have been evaded.
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