Binance Coin (BNB) is one of the most successful altcoins of all time. This year BNB has risen more than 400%. The success of BNB is directly affected by the success of Binance Launchpad IEO program. Crypto community is very optimistic that BNB will be able to rise even higher as long as the launchpad program stays popular. BNB itself has different use cases, not just to participate in Binance IEOs. Other use cases include trading fees discount on Binance.com and as gas fees for Binance DEX.
However, the biggest use case for BNB this year has been to participate in IEO lottery allocations. With this article, we are going to analyze Binance Coin price prediction, especially around the events of Binance Launchpad announcements.
What Is Binance Launchpad? What Is IEO?
Binance launchpad is Binance platform to launch new IEOs (initial exchange offerings). For those who don’t know what is IEO, it’s a launch of new crypto project that requires funding. A crypto project that is launched through Binance Launchpad is guaranteed to launch on Binance.com exchange with multiple trading pairs (such as against BTC and USDT). Knowing the popularity of Binance as the most famous cryptocurrency exchange in the world, many traders are always enthusiastic about all the new crypto tokens that are launched through their IEO platform.
All IEOs that are launched on Binance this year have been very successful. Their prices ended up higher on exchange as soon as the tokens were launched on the trading platform. For example, Binance’s most recent IEO, Elrond. The IEO token price was $0.00065 for each token. Now one Elrond token (ERD) is being traded at ~$0.0055791. That’s a huge increase, more than 8x of the IEO price. Due to the success of Binance’s IEOs, many crypto traders try hard to get into their next IEOs.
Nevertheless, Binance forces all accounts to hold certain amount of BNBs in their Binance account to get a lottery ticket to participate in the IEOs. Based on Binance’s most recent rules to participate in their IEO (rules might change for future IEOs), each binance account is required to hold at least 50 BNB, averagely, for 9 days. Then, after 9 days, Binance will randomly choose the lottery winners from those accounts who have been holding BNBs in their account. Each winner is given allocation (around $300 worth of the IEO token each allocation) to participate in the IEO.
If you successfully win the lottery for the IEO participation, most likely it’s easy to get hundreds of percentage of ROI on the first trading day. The biggest winner of Binance Launchpad is obviously Binance Coin (BNB) itself, as you are required to hold certain amount of BNBs just to get the lottery ticket.
How To Trade BNB | Binance Price Prediction 2019
Predicting Binance Coin price is not an easy thing to do but it becomes easier to predict if traders analyze how Binance price action behaves around the IEO announcements. Binance CEO, Chang PengZhao, has a monthly AMA with Binance fans through Periscope and he always posts the live feed to his personal twitter account as well. During the previous AMA sessions, the fans always asked the question “when is the next IEO announcement?” and BNB price went up significantly higher as soon as Binance CEO gave his answer. BNB price usually pumped for a few days before crypto traders started dumping the coin afterwards.
This July Binance CEO hasn’t announced any date for the live AMA yet. You should pay attention to Binance’s official twitter account. When they announce the AMA, you should watch the live session. Wait until someone mentions the next IEO announcement and wait for the CEO’s answer. Binance Coin (BNB) price will have a very good chance to go up if the CEO answer is positive. For example, if the CEO answer is “the official announcement is next week” or “the official announcement is in the next few days”.
And the good thing is, this pump from the AMA session might last for a week or at least the first few days after the AMA session. Just be careful if you decide to trade BNB because the dump might happen very fast especially against BTC.
*Disclaimer: While this post try to predict the market movement but keep in mind that cryptocurrency market is always highly speculative. This post is not a financial advice and you must always trade with your own risk management and make your own decision.
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