Is there cause for concern over the findings of this report on Binance, BNB, and CZ?

• An exciting report has just been released, revealing that CZ maintains control over an impressive 64% of BNB’s token circulation!
• Despite this surprising news, the social volume and sentiment surrounding BNB remain positive as ever.

Even with the recent challenges faced by Binance in the legal arena, the altcoin has managed to maintain its stability in the market. BNB’s price movement has remained steady in the past few weeks, holding onto its market cap without significant losses.

But could all of this be about to change?

Discover the lion’s share owned by CZ

According to a recent enlightening report by Forbes, former CEO CZ still has a considerable hold on 64% of BNB’s circulating supply, amounting to a whopping 94 million tokens. This dominance stems from an initial allocation of 80 million BNB tokens to Binance’s founding team, with 46 million still under the company’s control.

Together, CZ and Binance wield an impressive 71% share of the 147 million BNB tokens currently circulating.

This concentration of ownership translates into significant wealth for the former executive.

While CZ’s recent predicament may temporarily lessen the risk of a massive sell-off that could trigger a price correction, the high concentration of BNB ownership raises a crucial concern for investors – Centralization. The considerable ownership by CZ and Binance gives them significant influence over the price and future of BNB. This lack of decentralization poses a risk factor for investors.

Furthermore, any unforeseen events affecting CZ or Binance, such as a security breach or regulatory crackdown, could precipitate a sharp decline in the value of BNB. This vulnerability to a single point of failure underscores a major drawback of a centralized cryptocurrency like BNB.

No immediate negative impact

Interestingly, despite the revelations of CZ’s substantial holdings, the price of BNB has not displayed a negative reaction at the time of writing. Currently, BNB is trading at $607.33, with its value slightly in the green.

Social activity has notably surged in the days following the CZ update. Surprisingly, reactions on social media platforms have been overwhelmingly positive, as evident from the increasing weighted sentiment for BNB.

What does BNB’s market cap look like in BTC terms?

Source: Santiment