Honestly, I don't see any reason for concern, much less the devaluation.
If the goal of XMR was to maintain privacy, what point did it make to use Binance's XMR? Privacy ends immediately, as KYC has to be done.
People chase news a lot and don't even think about it. Even worse were those who used XMR on Binance, and then came here to argue that XMR was better because of privacy.

It is nobody’s business if people prefer to buy thelr xmr’s from binance. I don’t think it is the smartest move too but either way binance just fucked their customers over big time.
They offered a service, they listed a coin on their platform. Whether it is a privacy coin or not it doesn’t matter. They declared that they will be delisting it, which I have no problem with, but not letting people withdraw their money?
That’s a scam. If binance had a representative here, I would give him a red trust rating for this and a flag.