The fallout? A punishing “altcoin winter” that could slaughter altcoin valuations while bitcoin continues to trend higher.
Binance US Launch Could Trigger Brutal Altcoin Winter
That’s the shocking analysis of crypto economist Alex Krüger, who warns that Binance’s decision to launch a regional US exchange and boot US traders from its core platform could fundamentally reshape the global cryptocurrency market.
Binance, as CCN reported, has partnered with BAM Trading Services Inc. to launch Binance US, where it will directly compete against Coinbase (read more in CCN’s exclusive interview with Binance CEO Changpeng Zhao).
Concurrently, the world’s largest crypto exchange quietly updated its terms of service to bar US residents from accessing its core platform, Binance.com. Those changes take effect on Sept. 12.
According to Krüger, it’s likely that, due to stringent regulatory restrictions, Binance US will feature a much narrower range of crypto assets than are listed on its central exchange.
1. Binance US coming.
2. Binance may move US users (reportedly 25-30% of total) from https://t.co/PNtC8MFp7I to Binance US.
— Alex Krüger (@krugermacro) June 14, 2019
Since US traders make up as much as 30% of Binance’s user base, he expects small-cap cryptocurrencies listed on Binance but not the US exchange to suffer brutal corrections.
“#AltsWinter is coming,” he tweeted. “Good for $BTC and the majors.”
Binance Coin Risks Steep Sell-Off
Of particular concern is Binance Coin (BNB), the cryptocurrency exchange’s propriety token that it…