Josh Rager, a cryptocurrency trader and analyst popular on social media, has recently predicted that Binance Coin (BNB), the cryptocurrency of leading crypto exchange Binance, could face a ‘bloody correction’ if anything goes wrong with the rollout of its margin trading feature.
On microblogging platform Twitter the trader reminded his followers that all markets correct, and that a failure in the rollout of its margin trading options could be a trigger that sees traders dump BNB.
Data from CryptoCompare shows the BNB token has been having an incredible year so far. While in early January the cryptocurrency was trading at about $6, it has since surged to hit the $35 mark this month. In the last six months, cryptocurrency’s price has risen by over 500%.
This saw Binance Coin become the seventh largest cryptocurrency by market cap. Its price rose as the exchange has been seeing various positive developments, among them the launch of Binance Jersey, which lets users trade BTC and ETH for EUR and GBP, and the launch of a decentralized exchange that lets users trade directly from their wallets.
This month, the cryptocurrency surged to a new all-time high after it teased the rollout of margin trading, a feature seen as an important growth factor for crypto trading. So far, Binance stayed away from it, while exchanges like Kraken and Poloniex already offer it to its users.
Speaking to TechCrunch, a Binance representative reportedly confirmed that the exchange is going to launch margin trading “soon.” To Josh Rager, if “anything remotely goes wrong” with the launch, the price of Binance Coin will “dump like no other.”
It’s worth noting, however, that earlier this month Binance was hacked for over 7,000 BTC, then worth over $40 million. The crypto’s price was barely affected by the incident, even though it forced the exchange to temporarily shut down deposits and withdrawals. The market likely barely reacted as the company has a Secure Asset Fund for Users (SAFU) that covered the losses.
At press time, Binance Coin is trading at $33.3 after falling 4.9% in the last 24-hour period. Over the past 30 days, the cryptocurrency is up by 42%.