When Binance was launched in 2017, little did the world of cryptocurrency realize that this token based on the Ethereum blockchain will challenge the existing ones. Based in Shanghai, Binance Coin is a utility coin known as BNB.
It raised $15 million in its initial coin offering — a funding alternative to venture capital where start-ups sell new crypto tokens instead of equity.
In April 2019, it hit a 15-month high increase. The progression of this utility coin upward hasn’t stopped since then. So why is Binance rising steadily?
Strong and Reputable Team and Leadership
The Binance team is led by its founder, Changpeng Zhao, also known as CZ. CZ and his team have a wide range of experiences in Wall Street and cryptocurrency financing. And they have a track record of successful startups.
Reporting on CZ’s ability to weather any economic storm successfully, he said in an interview:
Compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business.
And in the interview with CNBC about how things will pan out for Bitcoin, CZ said:
Even if I don’t know what will catalyze a bitcoin bull run, I am certain it will happen… Sooner or later, something will trigger it.
So when traders see such a foresighted CEO on an exchange, its coin is bound to continue rising.
Low Trading Fees
Trading on BNB only entitles traders to a scheduled discount. When the coin was introduced, users were able to reduce the trading fees by 50% on the platform.
On its official website, Binance exchange offers traders a standard trading fee of 0.1%. The amount is determined by the trading volume. Users who trade with BNB are offered a “special discount” on their trading fees. You can imagine the huge impact of such a reduced discount on potential and existing investors alike.
If you are a regular user of the exchange, using the coin offers you a unique opportunity to earn an impressive discount.
As mentioned on the website:
BNB has multiple use cases, but within the Binance Exchange ecosystem, it is used as a utility token that allows users to receive discounts when paying for their trading fees. The fee discount is gradually reduced after every quarter until it reaches 0% on the 15th of July, 2021…… Moreover, the fee structure also changes according to the trading volume (30 days) and tier level of the account.
Quick Transaction Processing
Similar to the above reasons is processing. The ease and speed of processing the transaction on the exchange can also explain the steady rise of Binance. Compared to Bitcoin and a few others, the transaction processing is fast. For example, Binance technology can process 1.4 million orders within 1 second. This is besides its ability to host 20 million users with ease. That’s about the leading figure around in potential exchange volume.
Binance Coin Features
Binance Coin, BNB, has some inherent features that contribute immensely to its rise. One of the features is the strength of security. To make BNB safe and stable, Binance uses the architecture of multi-tier and multi-cluster. And making it more usable is the support it has for multiple device and apps. It supports various web browsers and runs perfectly on Android, HTML5, and WeChat platforms among others.
Many users will like to trade with the coin of an exchange with multi-language support. That is exactly one of the good sides of BNB. In addition to English, Binance supports Chinese, Japanese, and Korean. In its White Paper, the company promises to keep increasing the number of languages it supports as “more languages will be added over time”. It also produces strong liquidity in relating with a number of other cryptocurrency pairs. This high liquidity will cause the reader to desire to hold their assets in BNB.
The Binance Launchpad
A very huge progressive leap for Binance Coin is that Binance Launchpad. It was launched in December 2017 as an exclusive incubator. It is targeted at raising funds via an ICO to investors whose funds will be made payable in BNB only. Since its launch, the Launchpad has been consistently been successful.
According to the Binance blog:
Binance Launchpad, the exclusive token launch platform of Binance that helps transformative blockchain startups raise funding to develop their products and drive user adoption
Binance Coin’s achievements with the Launchpad is remarkable. Some of the listed projects that have been completed through Binance Launchpad include BitTorrent – TRX Session, Matic – BNB Session, Perlin, Band Protocol, and a vast collection of other startups.
BitTorrent (BTT) and Fetch.AI are good examples of these rising strides. For a good number of investors that are fast enough to get in, these captured a remarkable RoI. BTT token actually soared to 10 times of its value in just a few weeks following its listing on the exchange. And for the Fetch.AI, it was almost 5 times of return within minutes of its listing on the exchange. It opened the opportunity of trading in the token to anyone who missed out and still desires to do so.
Out of some 24,000 users that pre-signed the User Agreement in a project, a huge 19,860 actually did submit a buy order hoping to secure the token that was about to become widely available. In just 22 seconds, the project raised $6 million with a $2175 average investment, all paid in BNB.
24000 people pre-signed the User Agreement, 19860 people successfully submitted a buy order, 2758 people got a piece. The first 22 seconds (not 10). https://t.co/eVQy741bhO
— CZ Binance (@cz_binance) February 25, 2019
It is clear then that the Binance Launchpad is contributing greatly to the rising of Binance Coin.
Binance Lending Service
On August 28, 2019, Binance added another line of service, the Binance Lending Service. Through this service, Binance users can lend assets and earn some interest on them. Binance launched the fifth phase of their lending products today, September 20, 2019. The exchange now allows users to lend assets and get interest with Zcash (ZEC), Monero (XMR), and Dash (DASH).
This opens the way for investors who are exploring all investment opportunities on Cryptocurrency industry to earn passive income by lending their assets via the supported digital coins.
With the above reasons, for now, it can be safely said that Binance coin has arrived and is here to stay.