The crypto market remains mired with bearish sentiments and extreme FUD. Binance Coin (BNB) has been one of the biggest losers after the SEC sued both Binance and Coinbase within a span of 24 hours.

With BNB’s recovery now dependent upon a long-drawn legal battle, investors are already looking at alternative tokens that can outperform the crypto bear market. Let’s take a closer look at BNB’s prospects and two new tokens that are defying the bear market.

BNB Plummets Due To Binance FUD, When Can The Token Bounce Back?

Binance Coin is struggling with an extremely negative outlook after the SEC sued Binance for illegal operation and sale of unregistered securities. To make matters worse, the token itself was labeled an unregistered security by the SEC.

The security versus commodity debate has now become the overarching narrative of the crypto market. Tokens that are considered securities will likely face suffocating regulation.

Since the lawsuit, BNB has slid significantly in the last 9 days. Despite several bursts of bullish momentum, the token remains at an almost 5% loss over the past week.

Data from Coinglass, an on-chain data analysis company, reveals that open interest in Binance Coin Futures reached an all-time high. Furthermore, the negative funding rate in the perpetual futures market also reveals that investors are betting against the token.

The SEC’s lawsuit has also created extreme FUD in the market. Binance founder Changpeng “CZ” Zhao took to Twitter to dispute the narrative that the exchange converted its crypto holdings to fiat. He stated that their holdings even increased after the lawsuit.

However, one fact that CZ can’t dispute is that Binance suspended 10 trading pairs involving the BNB token, creating an even more uncertain environment for the token.

Any hope of Binance Coin’s recovery now rests on early results from the exchange’s legal team. The hearing on SEC’s petition to seize Binance.US assets will take place tomorrow. Binance’s legal teams have fired back at the SEC, stating that SEC’s petition seeks to effectively put the exchange out of business.

Binance Coin has surged by 5% i