Changpeng Zhao will be released from federal prison on September 29. Binance is preparing several new actions to welcome him, and a crypto rally is expected. 

BNB seems most likely to benefit directly, but other cryptoassets may also profit from “Uptober.” 

CZ Set Free

Changpeng Zhao, founder and former CEO of Binance, has been in prison for the past several months. However, thanks to a plea deal with the Department of Justice, CZ is set to be released on September 29. 

Important questions have been hanging in the air for the crypto community: how will crypto markets react? Where will Binance go from here?

For one thing, CZ’s influence in the company is far from over. Technically, he has been permanently barred from resuming his position as CEO or other direct leadership. 

However, he is still the majority shareholder and, as such, can appoint people to critical positions. New CEO Richard Teng has claimed that the company will have a new focus on compliance.

“Most financial institutions at some point of their life will choose to pay a heavy penalty. But what’s important is to realize the mistakes, make the right investment and move on and become better. That’s what we are doing now,” Teng said.

Whatever CZ decides to do upon release, he will have supporters. For example, CryptoQuant CEO Ki Young Ju fiercely spoke up for CZ on September 22. 

Young Ju painted CZ as a pioneer, a “businessman worthy of respect”, and stressed that he has paid his debt to society. If CZ wants to turn over a new leaf, he should have the opportunity to do so. 

Binance is already taking several steps to generate good publicity before CZ’s release. On September 25, the company announced a comprehensive system upgrade to improve performance and stability on Binance’s platform. The announcement stresses that all services will experience interruptions, suggesting that these upgrades could be comprehensive.

Additionally, Binance Coin (BNB) will have its own upgrades on the same day of CZ’s release. According to a blog post from BNB, the Bohr hard fork will go live on September 29, featuring substantial quality-of-life upgrades. 

Most prominent is the ability for validators to produce consecutive blocks, creating a smoother experience for developers and users. BNB is targeting a $600 price in the wake of this upgrade.

Broader Crypto Sentiments Are Bullish

Beyond the potential windfall to BNB, bullish sentiment is also rising for the wider crypto market. Under the catch phrase of “Uptober”, several prominent commentators in the community have ascribed crypto price rallies to CZ’s release. In a nutshell, the theory goes that October has traditionally been a profitable month for the industry. 

When CZ walks out of prison at the beginning of the month, it will generate good press for crypto everywhere. If Binance’s strategies for BNB are successful, at least one prominent coin will rally at the same time. 

It’s small wonder, then, that people are speculating success for the broader industry. Bitcoin is jumping for largely unrelated reasons, and Zhao’s release might act as a catalyst.

Source : BeInCrypto - Sep 25, 2024