Binance Coin Triples in Last Three Months, Echoes Glory Days of Bitcoin
For those who witnessed the cryptocurrency boom will agree that it completely revolutionized the financial sector. Bitcoin became the hottest topic in industry circles, and it went on to become one of the most valuable investment assets ever known.
However, things have slowed down drastically, as the crypto space witnessed its worst period in 2018. Bitcoin itself kept losing the price battle for six straight months, finally breaking the losing streak in February this year. And that wasn’t a case exclusive to Bitcoin, as almost every established digital currency suffered the bearish trend. A vast number of coins lost as much as 90% of their value. Some experts went on to claim that the bubble of cryptocurrencies has burst finally.
Amid all this chaos, a relatively new coin is illuminating light in the darkness for the crypto space. World’s largest cryptocurrency exchange in terms of transaction volumes, Binance Exchange has seen it’s in-house cryptocurrency Binance Coin grow, and that too, at a phenomenal rate. It has convincingly proved that crypto space is very much alive and kicking.
The Malta-based exchange’s coin is now the hottest in town, which has tripled in value in the last three months. It has now reached a healthy price of $15 a piece. The coin benefited from the fact that the market attitude is steadily moving towards the bulls from the bears after a disruptive 2018.
Binance Exchange was launched during the crypto boom, back in 2017. Since then, the journey has been quite bumpy as founder Zhao Changpeng had bitter times with agencies in Japan and Hong Kong and finally had to shift base to the European island country. The rise of Binance Coin has turned out to be a saga of struggle and success in itself.
Analysts and experts of crypto space are all praise for Changpeng’s brainchild and its team. Managing Partner of Texas-based Multicoin Capital Management, a renowned hedge fund firm, Tushar Jain stated that Binance Coin has the best execution team, and his firm is holding them for the foreseeable future.
Binance Exchange has about $1 billion of daily transactional value, which makes it the largest across the globe. The exchange launched Binance Coin (BNB) in July 2017, with 200 million tokens offered in the Initial Coin Offering (ICO). The BNB tokens are used by crypto holders on the exchange to pay fees levied for transactions. The coin has also become a popular medium of exchange among start-ups for their ICOs.
What makes Binance Coin plausible is the company’s practice of hooking the performance of the exchange with the number of tokens in circulation. The company intends to plough back 20% of quarterly profits for buying back and destroying Binance Coin, for the next ten years. About half of the total coins are issued to investors and company employees.
According to certain reports, Binance is also developing a public blockchain to facilitate transfer and trading of digital assets. Zhao reportedly expects the new public distributed ledger to be launched in the next two to five months.