SEC Going After Binance And It's BNB Shitcoin

We've come a long way since the days of creating your own shitcoin and paying the listing fee to get on binance or if you cant afford it give them a big stake of premined tokens to market make with and create an IDO using their launch pad.

Lol, when Binance? When Moon? Am I right?

Binance had a great casino, it was making money but that was never going to be enough for CZ, the team, and their band of investors. The golden age of centralised exchanges was a brief period in history and with services like stablecoins, a lot of trading is moving on-chain as blockchain companies want to keep value in their ecosystem and earn as much transaction fees as possible.

Fee compression has started to pinch the bums of centralised exchanges and once ETH DEFI started to gain traction those juicy fees are starting to produce less yield.

If you can't beat them, fork them

So what do you do when ETH and these other chains start to eat into your profits? You launch your own shitcoin chain of course, and they did just that forking ETH and removing proof of work and creating an even more centralised proof of stake version that offered cheaper fees.

Five years have gone by and BNB and its so-called smart chain have been a hit for the company, extending their services into the customers they were losing, pulling in customers that they weren't able to reach who preferred to use on-chain services and gobbling up their fees

With everything running smoothly in establishing a multi-billion dollar parallel service to its centralised service and then launching a multi-billion dollar stable coin option on top of it. Binance was off to the races.

Until now, as I keep telling people the wheels of justice move slowly, but the SEC has finally caught up and are looking into the BNB ICO to establish if it is, in fact, a security or not.

Now anyone with a half functioning brain can tell you it passes all 4 points of the Howey test but the burden of proof is now on the SEC and Binance and its army of lawyers and lobbyists are going to try and put all sorts of stories between them and the facts.

The crypto exchange is not only dealing with the BNB token ICO but face multiple investigations such as possible trading abuses by Binance insiders, and the securities regulator is also probing market-making companies tied to Binance CEO Changpeng Zhao (CZ).

Slap on the wrists

While the news did hit the BNB token slightly with an 11% drop, most crypto bros feel it's too big to fail, that they'll get a slap on the wrist, pay a fine as BlockFI and EOS did, and continue operating.

History has shown that white-collar crime is hardly seen as serious in the crypto space and with enough money you can make things go away.

However, this time could be different, could Binance be the poster boy for coming down hard on shitcoins? Personally, I doubt it. A sad reality, as many people have been hurt by these predatory practices.

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