Trump Grants Surprise Pardon to Changpeng Zhao…Will Binance Coin Ignite a Rally?

Trump Grants Surprise Pardon to Changpeng Zhao

Will Binance Coin Lead the Rally?

"Expectations for Binance's U.S. Operations to Ramp Up"

"Domestic GOPAX Acquisition Also Gains Traction"

U.S. President Donald Trump granted a surprise pardon to Changpeng Zhao (CZ), the founder of Binance, the world's largest virtual asset (cryptocurrency) exchange. The virtual asset industry is closely watching the potential impact of the move on the market.

The White House said in a statement on the 23rd (local time) that "President Trump used his constitutional authority to pardon Changpeng Zhao." White House spokeswoman Caroline Leavitt said, "CZ was a figure prosecuted amid the Biden administration's war on virtual assets," adding, "The Biden administration pursued him out of a desire to punish the virtual asset industry despite there being no fraud charges or specific victims." Changpeng Zhao said on X, "I thank President Trump," and "I will do my best to make the United States the capital of virtual assets."

The market reacted immediately. Binance's utility token, Binance Coin (BNB), jumped from 1085 dollars to 1150 dollars—about a 6% surge—immediately after the pardon announcement. Virtual assets based on the BNB Chain or associated with the BNB Chain also saw significant gains. Representative examples include World Liberty Financial (14%), MemeCore (4.5%), Aster (13.4%), and MYX Finance (9.2%).

It is interpreted that investor sentiment strengthened amid expectations that Binance's U.S. operations could be fully revived. Binance's U.S. operations had been effectively suspended after a 2023 guilty verdict in the United States for violating anti-money laundering (AML) laws. The Wall Street Journal (WSJ) reported, "(With this pardon) there is a high possibility that a path for Binance to return to the U.S. could open up."

Will Binance Coin Lead an 'Altcoin Bull Market'?

There are also views that Binance Coin could lead an upcoming 'altcoin bull market.' Prior to the news of Changpeng Zhao's pardon, Binance Coin had shown notable gains among major altcoins, supported by solid on-chain trading volume and the emergence of popular projects. This is why the market had evaluated that "Binance Coin has become the protagonist of an 'Uptober.'"

Demand could also increase significantly. Binance Coin is used for various purposes, such as fee discount benefits on the Binance exchange, participation in Binance Launchpad initial coin offerings (ICOs), DeFi activities, and everyday payments. Jung Seok-moon, director of the Prestori Research Center, said, "Currently, Binance US, Binance's U.S. subsidiary, offers only limited services for Binance Coin, which is restrictive from a supply-demand perspective," adding, "However, as Binance US expands its operations, the use cases for Binance Coin in the U.S. could expand."

There is also analysis that if Binance were to re-pursue an initial public offering (IPO), Binance Coin could serve as a kind of equity proxy. Binance US had originally been preparing for an IPO since 2021. However, the 2022 crypto market crash and the subsequent emergence of anti-money laundering legal risks the following year led to the IPO's collapse. As virtual asset companies such as Circle and Bullish have successfully completed IPOs this year, Binance US may also reattempt an IPO.

Director Jung said, "Because Binance is a privately held company, investors who want to invest in Binance have limited options," and analyzed, "Binance Coin could be regarded as an alternative investment to Binance shares."

Possibility of Accelerated Entry into South Korea

Attention is also focused on the impact Changpeng Zhao's pardon may have domestically. Because Binance may have shaken off legal risks as a result of this pardon, it is likely to speed up its domestic business entry. Binance recently completed the acquisition process of the domestic virtual asset exchange GOPAX.

An industry official said, "It is uncertain whether Changpeng Zhao's pardon will completely resolve Binance's legal risks," but added, "(The pardon) is highly likely to have a positive impact on Binance's GOPAX acquisition."