While Ripple's victory in the SEC case raised expectations for other altcoins, crypto exchanges took a breath and started listing XRP again.
Ripple's victory is considered significant as it is directly related to the SEC's lawsuits against Coinbase and Binance. The SEC accuses Coinbase and Binance of selling unregistered securities in these cases.
The verdict in the Ripple case revealed that the secondary selling (i.e., trading on exchanges) of altcoins does not violate securities laws. This precedent is considered to be quite favorable for lawsuits against exchanges.
Why Didn't Binance Coin Rise?
Although it is considered that the decision and its subsequent effects will be positive, this opinion was not reflected in the BNB price.
Binance Coin (BNB), which rose by 6% after the Ripple victory, deleted all of these gains and fell below the price at the time of the news.
Despite the positive news about the general recovery in altcoins and lawsuits, BNB's underperformance “will there be negative news about Binance in the coming days?” increased the number of questions.
Looking at the data provided by Coinglass, we see that the BNB funding rate has reached the highest levels since April. This shows that the short positions on BNB are quite high.
Excess BNB shorts while altcoins are rising “does someone know something?” However, when we look at the previous price movements, we see that there is no direct decrease in the price when the funding rate is so negative, and that deep decreases usually come when the funding rate is neutral.
These shorts are also likely to be for hedge purposes. As you know, Binance recently announced new launchpad projects. Whales who want to benefit from these projects may have opened a BNB short position to hedge the BNB they bought from the spot. Because taking the risk of BNB, the token of an exchange sued by the SEC, to join the launchpad may also have brought a need for protection.
If no new negative news about Binance is served in the coming days, it will be certain that these shorts are for hedge purposes.