Binance Coin (BNB) is one of the top altcoins by market cap. It was one of the most successful ICOs in history, and there’s no sign that it will stop rising anytime soon. Binance Exchange sold Binance Coin (BNB) in the form of ICO in the summer of 2017. The price has been rising significantly since then. This year (2019), BNB is often touted as the top cryptocurrency from both use cases and ROI perspectives.
You can use BNB to pay for trading fees incurred while trading on Binance exchange. Fees paid in BNB will give users discounts (for the first four years). Apart of that, BNB is also used to pay gas fees on Binance DEX (Binance.org). Starting this year, BNB also has one more important use case – which is to get a lottery ticket to participate in Binance’s Initial Exchange Offerings.
The Rise Of Binance Coin In 2019
BNB started as ERC20 token and part of the Ethereum blockchain. Today, however, Binance Coin has its own blockchain called the Binance Chain. Binance Chain can be accessed through Binance.org which is basically the website for Binance decentralized exchange (DEX). Binance Coin is seen as the winner among all altcoins especially in the 2019. While majority of altcoins have been rising against USD, but most of them did not rise as much as BNB. In the beginning of the year, BNB was traded at ~$6. At the moment, it is trading at ~$27.58 per coin.
The success of BNB this year has been attached to the rise of popularity for Initial Exchange Offerings (IEO). Binance IEOs have been very successful if you look at their trading prices compared to their initial offering prices. And, to participate in each IEO, you need to hold specific amount of BNB in your Binance account. That means you cannot participate in IEO lottery tickets without having enough BNB in your account. This use case on top of the quarterly BNB burn as well as for trading fees discount has been very fruitful for the price on the market as many big traders believe in the future of BNB.
BNB And Delegated Proof of Stake (DPoS)
The ERC20 token standard is widely used and these tokens rest on the Ethereum network. This token standard used to include Binance Coin but now BNB is part of its own blockchain called the Binance Chain. Binance Chain uses the Delegated Proof of Stake (DPoS) consensus protocol that is similar to that of NEO consensus mechanism. Steps were already taken for the transition to an independent BNB. The testnet for Binance Chain has been going live since a while ago along with the Binance DEX. Binance Chain is compatible with Ledger Nano S.
Binance Coin As One Of The Leaders Of Altcoins
Many people often criticize how most cryptocurrencies have zero real use cases in the real world. Apart from Bitcoin as a store of value, many outsiders believe that cryptocurrencies have no practical use cases and do not solve any problem. Binance Coin probably have the biggest use cases in the real world and not just based on future promises. For example, you can get trading fees discount on Binance exchange when you have some BNBs in your binance account. You can also participate in Binance Launchpad IEOs when you hold some BNBs in your Binance account.
All of these use cases are being used for ‘current’ purposes and not just for promises of what will happen in the future. Moreover, as mentioned in the whitepaper, BNB also has a burn mechanism so that 20% of the profits each quarter will be used to buyback BNB for burning. This will happen until 50% of the original amount is burned. The price of BNB often has a sharp increase before the burn because many traders speculate the decrease in supply will increase the price.
Currently, BNB is sitting comfortably at the 6th position of cryptocurrency rankings. When it comes to Binance Coin price prediction, Binance Coin can easily climb the ladder and might even eventually replace Ethereum as the altcoin leader if Binance can keep innovating and can cement its place as the most famous cryptocurrency exchange in the world.
Switchain is an instant non custodial cryptocurrency exchange. Our user user-friendly platform makes trading crypto easy and fast. We work with different cryptocurrency trading partners to guarantee the best cryptocurrency rates to our clients.