Early release of the Binance founder : Drop and rebound of Bitcoin and BNB !

The early return of Changpeng ZHAO, founder of Binance, to the forefront after his surprise release this Friday, September 27, 2024, shook the crypto market. After serving a prison sentence for regulatory violations, CZ was released two days before the scheduled date, which immediately affected the prices of Bitcoin and BNB. This release comes at a time when Binance, the world leader in crypto exchanges, is trying to recover from sanctions imposed by US authorities.

Bitcoin and BNB play yo-yo

On September 27, 2024, Changpeng ZHAO, founder and former CEO of Binance, was released after serving a four-month prison sentence. This release had a direct impact on the crypto market. Shortly after the announcement, Bitcoin’s price recorded a slight drop. After hitting highs during the day, the crypto fell due to the uncertainty generated by this news. Similarly, BNB, Binance’s native crypto, saw its price decline. This immediate market reaction is explained by questions about the future of Binance and CZ’s future involvement, as Binance attempts to reinvent itself after a series of regulatory prosecutions.

However, this decline was short-lived. A few hours after his release, CZ posted his first tweet, and this simple communication was enough to revive the markets. Bitcoin and BNB recorded a 3 % rebound. Despite his conviction and withdrawal from Binance’s daily operations, CZ remains a key figure whose actions continue to impact the confidence of participants in the crypto ecosystem.

CZ’s release : a new era for Binance ?

Although CZ’s release has captured attention, it does not signify a return to the helm of Binance. Since his conviction, Binance has undertaken deep structural reforms to distance itself from the controversial image left by CZ. Richard TENG, former regulator of Abu Dhabi, has taken the reins. Binance has implemented a strengthened governance model focused on regulatory compliance. TENG has notably stated that the company has pivoted to a more transparent and centralized approach, a transition dubbed “Binance 2.0.” This new organizational structure aims to meet the requirements of regulators, including the Department of Justice, which, as part of a settlement, has imposed strict oversight on Binance’s activities for three years.

While CZ no longer plays an active role in daily management, his influence remains significant. As the majority shareholder, holding 90 % of the exchange’s shares, he remains an essential player. However, this release would mark a new chapter for CZ, with initiatives outside of Binance, such as the Giggle Academy, an educational project aimed at underprivileged populations. Nevertheless, the challenges for Binance are not over. The company still faces lawsuits from the Securities and Exchange Commission (SEC), which could impact its ability to maintain its market dominance.

CZ’s release marks a pivotal moment for the future of Binance and, more broadly, for the entire crypto market. While Binance has managed to evolve without its founder at the helm, his influence on the crypto ecosystem remains strong. The rebound of Bitcoin and BNB following his tweet illustrates this influence. Now, Binance must succeed in convincing regulators, maintaining investor confidence, and better managing the consequences of ongoing legal cases.