And that’s our advice to CZ as Binance continues to struggle. 

Binance faces many challenges, starting with its banking partners turning their backs on it and a $130M bad debt looming.

However, something new is coming to the BNB Chain that could turn the tides in its favour.

But can this new technology bring Binance out of the trenches, or do the problems outweigh this new opportunity? 

There’s only one way to find out. Read more…👇

TLDR 📃

• BNB Chain introduces opBNB, a Layer 2 solution to enhance speed and cost-effectiveness
• Binance faces isolation from traditional financial partners, and there's a $130M risk due to a loan tied to BNB prices.
• BNB's trading outlook is bearish, focusing on opBNB for potential opportunities, while Binance faces growing problems in the traditional finance sector.

This is how you can access opBNB 🪂

After months of development and testing, BNB Chain has announced the mainnet launch of its opBNB chain to infrastructure providers. However, it will soon be fully available to the public. The mainnet will open to the public from the end of August or early September.

But what exactly is opBNB? 

opBNB is a Layer 2 solution designed to make the BNB Chain faster and cheaper, similar to how Arbitrum and Optimism enhance Ethereum. But opBNB will make Binance chain much faster and more cost-effective than Ethereum’s L2s. We previously covered what’s under the hood of opBNB.

opBNB’s mainnet launch presents a fantastic opportunity for users to become early adopters in a new ecosystem. And the best part is an airdrop opportunity for those who try out the network early on.

However, you must complete three network steps to qualify for a share in the $50,000 airdrop – you can find the steps here.

opBNB network highlights

Here are some essential resources to help you make the most out of opBNB and give you an easier airdrop hunting experience.

opBNB Network

• Network Name: opBNB Mainnet
• RPC URL:  https://opbnb-mainnet-rpc.bnbchain.org 
• ChainID: 204
• Symbol: BNB
• Explorer: http://mainnet.opbnbscan.com

Bridge

• https://opbnb-bridge.bnbchain.org/deposit 
• https://www.orbiter.finance/?source=BNB%20Chain&dest=OpBNB 

Tools

• https://dexscreener.com/opbnb/ 

DEXs

• Binaryswap:
   
• VertXSwap:

Once opBNB is launched, Binance will enhance several aspects of its technology. These updates include fraud-proof systems, account abstraction, seamless data availability and interoperability within the BNB Greenfield ecosystem.

However, while opBNB presents a significant opportunity for Binance, looming problems may outweigh the positives.

Wall Street has stopped playing nice with Binance 👿

The old guard is turning against Binance. 

Checkout.com, the credit card processing company that handles billions in crypto transactions for Binance clients, has terminated its contract with the crypto exchange.

At the same time, Binance's European banking partner, Paysafe Payment Solutions, will cease its support for the exchange in September. 

These are clear signs that Binance is becoming more isolated from the traditional financial system. This isolation makes it harder for Binance to onboard real dollars into crypto – and onboarding fiat into crypto used to be Binance’s competitive advantage.

The shutdown of Binance Connect is another clear sign that Binance is being forced to scale down, in contrast to its usual upward growth trajectory. Binance Connect is a fiat-to-crypto payments provider that links crypto firms with the traditional finance system.

Long story short, there’s a significant shift in sentiment towards Binance. Of course, there’s still the possibility that Asia presents an opportunity to Binance, as we previously wrote. Yet, the broad change in attitude from the financial services industry is something we can’t afford to ignore

However, there's something even more problematic on the horizon for BNB.👇

There’s a $130M hole in CZ’s pocket 😱

Do you remember a wallet that exploited the BNB Bridge in 2022 to borrow over $150 million worth of stablecoins from the Venus Protocol? Well, that wallet saw a $30M liquidation than $30 million as BNB prices dropped to $209 yesterday.

As BNB prices continue to fall, this massive loan is now at risk of complete liquidation. A liquidation of such proportions will be highly disruptive to the nascent DeFi ecosystem on BNB Chain. 

Hence, Venus and BNB Chain opt for a gradual rather than sudden liquidation. It’s like choosing the lesser of two evils – unless BNB prices rise, the position will be eventually liquidated – it is only a matter of how fast.

As BNB gets liquidated, the price is likely to decline. This is worth watching if you’ve got BNB in your portfolio. To monitor the position, you can visit this page to check its health factor and observe whether more BNB is being liquidated. 

But when it comes to trading, are we trading BNB now? Well, here's your answer 👇

BNB was no stranger to last week's bloodbath. BNB’s bearish structure continues, and we are now on track for the June '22 low of $185.

Note that BNB has been ranging inside the same region for over a year, between $335 and $185.

Although buying once $185 is reached would be a great decision, the price of BNB will likely need help to reach the top of the range - we're talking months. 

We'll be very realistic with you and say there are far better opportunities from a technical standpoint. You can find out more about those opportunities here.

For BNB, we expect a slow ride on the way down, given that BTC's price action has been steady since crashing last week.

Cryptonary’s take 🧠

Our primary recommendation now is to familiarise yourself with the opBNB ecosystem. 

This is where a significant portion of activity within the BNB ecosystem will be concentrated. Exploring the airdrop opportunities is worthwhile, so use our guides and links to get up to speed.

For Binance and the BNB token itself, the outlook remains bleak. We don't see any opportunities there unless BNB drops lower to $185, which could be an interesting level to buy, as we may see it return to the mean after such a drop. 

However, Binance's problems in traditional finance and the pressure BNB faces due to the Venus loan make it one of the least attractive assets.

As always, thanks for reading! 🙏

Cryptonary, out!