Binance Coin is a so — called service token issued by one of the largest cryptocurrency exchanges Binance in the world. The Token is based on the ERC20 format, and its total supply is 200 million. Over time, the token will become an independent cryptocurrency running on its own block chain, which will allow it to grow faster and be more independent.
Is Binance Coin a good investment?
Many people believe that the Binance coin is a good investment and one of the safest cryptocurrencies. Of course, no one can say for sure.
It is mainly used to pay commissions when exchanging Binance cryptocurrency, and commissions paid in Binance Coin on the exchange receive a discount.
Traders who make transactions with Binance Coin on the Binance exchange receive a 25% discount . In 2017, this discount was even higher — 50%.
This is a very smart way to get traders to return to the platform, and in some ways Binance Coin is like a discount coupon.
However, it is worth wondering how long this discount will last. In the future, it may continue to decline or even stop.
In fact, in 2019, Binance was supposed to halve this discount again to 12.5%, but so far this has not happened .
It is believed that Binance did not reduce the 25% discount because they want to remain popular and honest with their traders at the moment, however, this is worth paying attention to in the future.
It is also worth noting that the official document also indicates that in 2021, the discount will be reduced to 6.75%.
If this happens, interest in Binance Coin may cease, unless Binance offers another reason to trade or hold.
Binance Coin could be more accurately called a service token .
Does Binance Coin have a better use case?
Binance Coin has probably one of the best user cases in the world of cryptocurrencies. Compared to other coins, there is a real reason to use it, and it can contribute to the development of the community around you.
Many cryptocurrencies do not have this. They promise that they will do something over time or that people will be able to use smart contracts. Although other cryptocurrencies rarely offer tangible features that can be used today.
How does Binance Coin work?
From a technical point of view, there is nothing special about Binance Coin . However, there are a few important things to know about Binance Coin.
Since it was built on the Ethereum blockchain , it can be assumed that most of the technologies underlying it are very similar. Once Binance has moved to its own blockchain, there may be more significant differences.
One of the key differences between Ethereum is that Binance Coin does not support smart contracts, although BNB can be used as a “gas” in the Binance blockchain, which is similar. However, it should be noted that Binance Coin is a centralized currency, which will always alienate cryptocurrency enthusiasts.
Binance Coin is a relatively safe coin . It doesn’t have the same volatility as other cryptocurrencies. This may make it harder to find the entry and exit point key.
Binance Coin has been working very well since its opening.
After a disappointing end to 2018, Binance Coin rose 5% in late January 2020.
In February 2020, the Binance Coin cryptocurrency increased in price by 57%, and in March it continued to grow , where it grew by 55% . These are very big movements.
By the second quarter of 2020, prices were more static.
So far, it seems that Binance Coin can continue this uptrend. However, of course, no one can guarantee this, and some believe that there may be a serious correction in the price .
As the cryptocurrency market continues to evolve, leading crypto exchanges such as Binance have the potential to grow. If, as announced, institutional investors and major banks enter the cryptocurrency market in the coming years, this exit will lead to increased demand from Binance Coin buyers. An additional factor is that Binance has promised to use about 20% of the profits to buy back about 50% of Binance Coin units. This should also raise prices significantly in the future if Binance fulfills its promise!
In the action just announced, the Binance platform intends to issue 50,000 Binance Coin (BNB). Their total value currently stands at a total of one million dollars (US dollars). The actions taken should be a form of expressing gratitude to the exchange community. As you probably know, the number of users of the Binance platform is not only constantly increasing, but also supports its activities. To receive a prize funded by Binance, you must, of course, exchange funds for the amount of 1 bitcoin (BTC) using one of the services.