For many weeks now, the Binance Coin has been outperforming the entire cryptocurrency market. Almost every cryptocurrency news outlet has recorded the outstanding success of the Binance Coin following the Binance Coin burn. While many factors have influenced the surge in the price of the BNB coin, the most recent catalyst is the release of the long-awaited Binance Launchpad.
Following the release of the Binance LaunchPad, the price of the BNB coin has been bullish against the USD recording double digit gains. At the time of writing, the Binance Coin was correcting lower at $16.76. This shows that it is down by 1.84% against the USD. The trading volume is $244,385,696 and the market capitalization is $2,365,509,291. Keep in mind that the price of the Binance Coin was trading higher by up to 17% against the USD earlier today.
The Binance Launchpad is a token sale platform by Binance Labs. The platform is meant to be used for the introduction of new cryptocurrencies. As soon as it was launched, token sales for BitTorrent (BTT) and Celer, were completed on it successfully. While the launch of the Binance Launchpad led to a spike in the price of the BNB Coin, Binance Labs has received some criticism about the platform’s favoritism to whales (larger capital investors).
Why You Should Buy The BNB Coin?
The Binance Launchpad was introduced with amazing features. One of them is a lottery system. Initially, tokens were launched based on a first come first serve basis. Now, it’s going to be based on chance. To earn a ticket, users must have a minimum balance of 100 BNB coins. This amounts to about $1700 at current rates. Even with this amount, there is no guarantee that you will participate. This makes it more risky for users. It also makes it hard for traders with little capital to stand a chance.
Because of the rise of fake ICOs in 2017, traders are more inclined to use platforms like the Binance Launchpad. The update on the Binance Launchpad by Binance Labs will increase the value of the Binance Coin long-term. This is because people will hold more BNB coins over an extended period. This, in turn, will help the coins value. The Binance Coin has already proven its potential. So, if you’re looking for a token that isn’t too expensive, you can consider the BNB Coin.
Binance Coin (BNB) Price Today – BNB / USD
Before you rush and buy BNB, remember that the cryptocurrency space is unpredictable long-term. The fact that the Binance Coin is bullish now isn’t a guarantee that it will be bullish in the next few months or years. Keep this in mind irrespective of the digital asset you want to buy.
What Is Binance Coin (BNB)?
Binance is currently the world’s second largest cryptocurrency exchange, with around $6 billion in assets traded in an average seven day period. Binance’s rise to the top has been swift. Since its launch in July of 2017, Binance has grown at a rapid rate. Even in the current bear market users continue to sign up with the exchange. Binance was one of the first exchanges to reactivate user registrations at the peak of the 2017 bull market.
Binance is also the name of a cryptocoin (BNB) traded and used on the Binance exchange. Since the ICO, the value of BNB has risen with the growth of the exchange. BNB is now among the top 30 cryptocurrencies in the world by market cap.
What about Binance makes it so compelling? Why are so many people signing up to use this exchange? In this article, we’ll dive into those questions and more. The answers are surprisingly simple. The simplicity of Binance’s business model has been the key to its success so far, and it bodes well for future success.
How Binance Work: Understanding Binance’s Advantage
First, it’s worth understanding the basic mechanics of a currency exchange before we go any further. Solving some technical problems with exchange software is among Binance’s key competitive advantages.
Using the Binance Exchange
Binance does not support fiat currencies, so you can’t convert dollars, yen, pounds, euros, etc. on the exchange. (The name Binance is actually a combination of “Binary Finance,” suggesting that they only deal in digital assets.)
If you want to use Binance, you’ll need to already own cryptocurrency. Once you do, registration and setup are fairly easy, as is funding your Binance account.
The Binance Coin (BNB)
Along with the launch of the exchange, Binance launched an ICO. BNB is an ERC20 token built on Ethereum. The total supply is limited to 200 million BNB, after which no more coins will be created.
You can use BNB to pay your fees on the Binance exchange. While you can still choose to pay your fees in the cryptocurrency you’re exchanging, Binance offers a rebate as an incentive to pay fees in BNB. In your first year of membership on Binance, fees are discounted 50% when paid in BNB. With every subsequent year of membership, the fee discount decreases. By your fifth year using Binance, there is no longer a fee discount for paying in BNB.
The Future of the BNB Token
Binance is promoting the adoption of the BNB token in the hopes that it will drive customer loyalty. The rebate, of course, is a nice perk for lowering trading fees. But even after the rebate decreases, users are still likely to own leftover BNB that they might as well continue to use. As a dominant cryptocurrency exchange, we can expect Binance’s coin to continue to circulate widely. The more its adoption grows, the more valuable and useful it becomes.
Right now, BNB’s primary value is within the exchange. This makes BNB unique among most new coins since it already has a practical use case. Most investors will get the highest ROI out of cashing in on the BNB rebate. However, in the future, it’s possible the value of BNB could grow as an asset. For the earliest investors, they’ve already seen a large return on BNB. It’ll be interesting to see if investors continue to take the rebate or hold BNB in hopes that it will appreciate.
If Binance sees continued success on its current level, it will certainly implement more features and programs. These new capabilities and add-ons will all likely use the BNB coin. Their ICO Launchpad is one early example of an added feature using the BNB coin. There are likely to be many more.
Where to Buy BNB
Several exchanges other than Binance list BNB though the liquidity is low and there is little point in buying it anywhere else. Most users hold it to cut their trading costs and any coin supported on Binance is available as a trading pair with BNB.
How to Store BNB
If you’re interested in holding BNB as an investment, you should move it off the exchange into a wallet. As an ERC20 token, your BNB can be stored in any Ethereum address via MyEtherWallet. For improved security, you can also use a hardware wallet like the Trezor or Ledger Nano S.
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