TLDR:
- Binance Labs becomes independent after separating from its Venture Capital arm.
- BNB token price drops 6% following the news.
Binance, a major cryptocurrency exchange, has cut ties with its Venture Capital arm, Binance Labs, making it an independent entity. The VC firm has seen significant returns on its investments in Web3 and crypto projects. This separation has caused a 6% decline in the price of Binance’s native token, BNB. The exchange has been in the spotlight recently due to a $4.3 billion settlement with the US Department of Justice and its decision to stop supporting the Binance-branded stablecoin BUSD.
Binance Labs boasts a portfolio worth over $10 billion covering more than 250 Web3 and crypto projects, with return on investment at 14x. The recent price drop of BNB to $540 on Friday indicates a 6% daily loss for holders. The BNB price could further correct to $480 before attempting a recovery. Support levels for BNB are seen at $500 and $480, with a possibility of revisiting the Range High at $633.50 if there is strong buying pressure. However, the Relative Strength Index suggests that BNB is currently overbought, indicating a potential further decline in price.
