Binance Will Temporarily Suspend Deposits And Withdrawals To BNB Smart Chain Soon – Here’s Why

TL;DR

Binance will temporarily stop BNB Smart Chain deposits and withdrawals due to maintenance, but trading will not be affected. The price of BNB has fallen amid a market slump, with expectations for a possible recovery following the release from prison of former CEO Changpeng Zhao. The next effort

The world’s largest crypto exchange will hold wallets for BNB Smart Chain (BEP20) on September 5th. To support the process, it will temporarily stop deposits and withdrawals on the network. The maintenance is expected to last approximately two hours and services will resume once completed.

“Token trading on the aforementioned network will not be affected. Binance will handle all technical requirements involved for all users,” the company assured.

BNB Smart Chain is a platform developed by the exchange that offers support for the Ethereum Virtual Machine (EVM). It allows developers to migrate their projects from Ethereum without rewriting the code.

BNB Smart Chain operates alongside the BNB Beacon Chain (formerly known as Binance Chain). The specific architecture allows users to transfer assets between the two chains, providing additional opportunities for commerce and decentralized applications (dApps).

The native cryptocurrency of BNB Smart Chain is Binance Coin (BNB), which facilitates transaction fees and can be staked to participate in the network’s consensus mechanism.

BNB Price Outlook

The asset started the year on the right foot, with its price rising from $312 on January 1 to an all-time high of around $710 in June. At the time, BNB’s market capitalization exceeded $100 billion, surpassing well-known companies such as Starbucks, Dell, UBS and more.

BNB price, Source: CoinGecko

However, the price of the token headed south in the following months. It is currently trading around $500 (according to CoinGecko data), which represents a decline of 6% on a daily basis. The pullback coincided with a broader decline across the cryptocurrency market, with Bitcoin (BTC) briefly falling below $56.00, while Ethereum (ETH) fell to $2,300.

One factor that may trigger a renewed rally for BNB is the end of Changpeng Zhao’s prison sentence. Earlier this year, the former CEO of Binance was ordered to spend four months behind bars after he pleaded guilty to violating certain anti-money laundering requirements. Zhao (better known as “CZ”) is scheduled to launch later this month.

“BNB position: Let’s play a CZ game outside of the prison bomb,” said an X user.

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