5 reasons why Binance Coin (BNB) is up 75% this month

11 Feb, 2019 | Updated: 19 Feb, 2019
by Will Heasman
Analysis
5 reasons why Binance Coin (BNB) is up 75% this month

Binance Coin, the native cryptocurrency of the Binance exchange is currently sitting pretty on a massive 75% gain in the past month, with the rest of the crypto market struggling to stand up to the crypto winter, what exactly is catalyzing BNB?

BNB is citing a 75% increase in the past month - from $5.52 on the 13th of January, to today’s price of $9.64 - more than 40% of this has been in the past week alone. Its fair to say that BNB is on a particularly good roll, and it’s fairly cut and dry as to how it managed to accumulate and preserve such impressive gains.

Burn, BNB, Burn!

Since the start of 2019, BNB’s fundamentals have been impacted upon greatly, starting with the mid-January coin burn of over $9.4 million worth of BNB.

(might want to see a doctor about that burning sensation, CZ…)

As per its whitepaper, at the start of each quarter, BNB undergoes a coin burn, eliminating a portion of the circulating supply. The Binance exchange uses 20% of its profits to buy BNB and destroy them.

Read more: Binance completed 6th coin burn, CZ shares his insight about market situation

This coin cull acts as a catalyst for a price surge; simply put, as the circulating supply decreases, demand increases.  

#BUIDL

Changpeng “CZ” Zhao, leader and CEO of the Binance exchange has been persevering through this prolonged bear market with ease, exhibiting both the dependability and conviction of a man who knows exactly how a successful business is built.

This is why many in the crypto community have come to rely on CZ, and the Binance exchange as a quasi bastion within the industry, something which is hard to come by in this arena.

Built on top of this foundation, is an ever-evolving ecosystem, more than just an exchange plan to expand the company into a blockchain of its own.

Binance has a number of highly anticipated launches on the way, no doubt also pushing price speculation higher.

Read more: These are the 3 coins to watch for February

Binance Chain

One such imminent launch is Binance’s own blockchain, dubbed, simply: Binance Chain.

This new venture is said to usher Binance into a new era, and at the very least expand the operation far beyond its humble beginnings as a cryptocurrency exchange.

(yeah, so f%^k off...)

BNB comes massively into play as it will now inhabit its own blockchain, emerging from its native ERC20 cocoon, and swapping onto the newly minted mainnet.

Binance chain will allow projects to fundraise and launch their own tokens upon its mainnet. The funds raised will be done so via BNB, fostering a further use case for the coin.

Binance DEX

Going hand in hand with the mainnet launch and another venture in which BNB plays a prominent part is the Binance DEX.

The decentralized exchange will be built on top of Binance Chain and should be launched at some point this month.

The DEX is said to be aesthetically similar to the existing Binance exchange, but with all the benefits associated with a decentralized approach to trading, including a high level of security, and personal ownership of private keys. On top of this CZ recently announced that listing fees for new cryptocurrencies would be close to $100k; CZ purposefully set this price to discourage potential “scam or spam coins.”

Read more: Binance Chain will charge "close" to $100k to list new coins, says CZ

Crypto project teams hoping to land a coveted listing, can choose to pay the fee in BNB and receive a discount.

Furthermore, BNB will be utilized as a quasi ‘gas’ for priority transactions.

Launchpad

Binance has already had a busy year, on top of these upcoming launches Binance Launchpad was launched, launching BNB that little bit further into the atmosphere…

The Launchpad project is a fundraising platform upon which tokens can be launched. A similar concept to the Ethereum platform and raising ICOs, Launchpad has already taken off with the recent BitTorrent BTT sale which sold out, raising $7 million in under 20 minutes…

Read more: BitTorrent (BTT) ICO raises $7 million in under 20 minutes

BNB can be used by investors who wish to contribute toward token sales.

Furthermore, Launchpad incentivizes projects which incorporate BNB into their ecosystem by prioritizing those tokens for review.

With Binance’s consistent innovation, alongside useful integration of its native crypto, it’s no surprise that BNB is standing out among the crowd.

Read more: Binance Coin (BNB) sets a new all time high amidst the crypto winter

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Binance to the moon and keep facking coinbase!
11 Feb, 2019 - 19:24

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