Here is What is Driving Binance Coin (BNB) in the Crypto Markets
Moment ago, Binance Coin (BNB) achieved an all time high (ATH) against Bitcoin (BTC) in the crypto markets. The new ATH of BNB is valued at 0.0036626 BTC. Further looking at the USD value, BNB peaked at a recent high of $13.75 and currently up 20% in 24 hours. Investors who had bought the dip on December 15th last year when BNB was at $4.50, are now in the range of 200% in profits.
Reasons Why BNB is Ahead of the Rest
Back in late November of last year, Ethereum World News briefly touched on the following fundamental factors that would lead to BNB gaining in the markets in 2019. A few more have been added to the list due to recent developments
- CZ becoming one of the most interactive Crypto Exchange CEOs
- Discounts on the exchange apply when using BNB to pay for trading fees. 50% during the first year of operation; 25% during the second (current discount); 12.5% during the third; 6.25% during the fourth; and zero discounts after that
- BNB being used to support and investing in new projects on the Binance Launchpad. BitTorrent and Fetch have been successful with each selling out in under 30 seconds
- Incentives for users to hold more BNB such as increment in referral bonuses with more BNB held
- Use case (adoption) of BNB to pay for goods and services
- The Secure Assets Funds for Users (SAFU) to cushion clients from glitches at the exchange that might cause financial damage
- Launch of the Binance DEX testnet and a simulated trading competition with $100,000 in prizes that starts on the 7th of this month
- Creation of the Binance Chain that will allow BNB to migrate from an ERC20 token to the new blockchain
- The active Blockchain Charity Foundation which aims at making the process of giving more transparent
- Quarterly token burn to reduce the total supply to 100 Million BNB from the 200 Million distributed after the 2017 Binance ICO
Recent AMA by CZ
Further expanding on the first point in the above list, Changpeng Zhao held his second livestream on Periscope and Twitter earlier today. In the livestream, he answered a lot of questions from fans and investors. Most of the questions centered on the future plans at the exchange to which a summary of CZ’s responses can be found below.
- Promises of regular AMA (Ask me Anything) sessions with users of the exchange
- Delisting of tokens is necessary to uphold standards on the exchange
- The success of the Binance launchpad is due to good projects. The platform allows them to raise money and awareness through Binance. Token sales selling out quickly means there is demand
- Binance team continually building despite the bear market
- High community engagement by CZ, the Binance team and Binance angels (volunteers)
- One day response to 99% of customer trouble tickets on the exchange
- BNB becoming the number one ERC20 token outside prominent stablecoins
- 8 confirmed ERC20 tokens will migrate to the Binance Chain once the Mainnet is launched and more are interested in switching. All projects will become automatic Binance partners thus utilizing all marketing capabilities of the exchange
- Ease at which founders can create tokens on the Binance Chain platform
- Advancements of the Trust Wallet that will also automatically support all tokens launched on the Binance Chain
- The decentralized nature of the Binance community that spans across the globe
The full video of the livestream by Changpeng Zhao can be found in the following tweet.
What are your long term predictions on the value of Binance Coin (BNB)? Please let us know in the comment section below.
[Feature image courtesy of Unsplash.com]
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.