Binance’s BNB crypto token surges after founder Zhao starts stint as richest US inmate
- Founder Zhao Changpeng is worth an estimated US$38.5 billion after the BNB token reached a market cap of US$109 billion during his first week of in prison.d
![Holders of Binance’s native BNB token get trading-fee discounts on the platform. Photo: Reuters](https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/canvas/2024/06/10/e33ff993-9730-4a4e-9aa2-62fa9aad21ab_93a754b4.jpg?itok=ONJ1lju9&v=1717990591)
The BNB token, a cryptocurrency linked to Binance and its incarcerated co-founder Changpeng Zhao, surged to a record high in the first week of his four-month jail sentence in the US.
Its rally underscores Zhao’s status as the richest person ever to do time in a US federal lock up. Zhao reported to a prison in California on Tuesday to begin a four-month sentence for failing to properly safeguard the world’s largest crypto exchange against money laundering.
The price of BNB climbed to a peak of US$717.48 on Thursday, lifting its market capitalisation to US$109 billion, according to data from CoinGecko. The token has more than doubled in price since the start of the year.
![Changpeng Zhao, former CEO of Binance, arrives at federal court in Seattle on April 30, 2024. Photo: Bloomberg Changpeng Zhao, former CEO of Binance, arrives at federal court in Seattle on April 30, 2024. Photo: Bloomberg](https://img.i-scmp.com/cdn-cgi/image/fit=contain,width=1024,format=auto/sites/default/files/d8/images/canvas/2024/06/10/0f493c79-f9f8-40a8-9b31-68c74fa5457f_34f54c2a.jpg)
The trajectory of BNB also reflects the fortunes of Binance itself. The total value of assets on the exchange has swollen from around US$80 billion in early January to US$125 billion today, cementing its dominance even after a precarious period last year that culminated in the company paying a historic US$4.3 billion fine to settle a case with US authorities.
Holders of BNB get trading-fee discounts on Binance and the token is also used to settle fees on BNB Smart Chain, a blockchain popular with crypto apps, including games and exchanges.
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