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Binance Coin (BNB) Price Jumps Following Screenshot of Margin Trading

Binance Coin BNB Margin Trading

Binance Coin (BNB) continues to be one of the top earning cryptocurrencies in 2019. Since the start of the year, the native token to the leading cryptocurrency exchange Binance is up over 460 percent, with little halt in sight as the crypto markets turn even more bullish.

As previously reported by EWN, the rumor mill has been hinting at a forthcoming integration of margin trading on Binance. Speaking to community members earlier in the week, Changpeng Zhao confirmed that margin trading was being tested, but did not give a specific timeline on its release.

In a Twitter post published on May 24, the Binance team further added fuel to the speculative fire, with a series of screenshots that seem to all but confirm margin trading is coming in the very near future. While the post was making a tongue-in-cheek reference to their “dark mode/light mode feature,” the screenshot clearly displays the option for margin trading–a feature which is not currently available to traders.

“Dark mode 🌚 or Light mode 🌝? #Binance”

BNB responded in price to the news, jumping 9 percent as of writing and outpacing the gains of Bitcoin and most other top ten cryptocurrencies. While Binance is still not giving an exact date on when margin trading will hit the exchange, Changpeng Zhao claimed it would occur “very, very soon,” with the caveat that large-volume traders will have first access.

Despite suffering a $40 million hack in early May, Binance has continued to be a leader in the space of cryptocurrency exchanges and has paved the altcoin market valuation with the gains of BNB. While some have taken fault with the exchange’s handling of the hack, they remained transparent through the process of their security upgrades and were quick to notify investors that losts BTC would be covered via the #SAFU Fund.

Binance has also made a strong effort to boost the intrinsic valuation of their native token, at least in the eyes of investors looking to find fundamentals in the cryptocurrency market. While crypto may act more akin to a volatile currency than an actual digital asset, Binance has done its part to provide reason for traders to invest in BNB. The currency provides a discount on trading fees and is also required–in an increasingly large amount at today’s price–to participate in the Binance Launchpad lottery.

Given the trajectory of the exchange’s decisions to date, it’s possible margin trading will somehow feature into the use of Binance Coin. While the exchange has yet to make any statement on user access, it could require an account minimum of BNB, similar to the exchange’s requirements for Launchpad. Such a move would likely take the price of BNB even higher, although the exchange would have to contend with a realistic BNB holding at its current valuation.

Already investors are required to have 500 BNB valued at $17k, in order to receive the maximum amount of lottery tickets and insure their highest chance of Launchpad buy-in. If the price of Binance Coin continues to climb, Binance could buffer all but the highest-capital investors.

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Binance Coin (BNB) Continues to Fall as Bitcoin Breaks $6000

Binance Coin Price Exchange Hack 2019

Binance Coin started 2019 with a strong rally over the previous year, with the coin rising 300 percent through the first four months.

While other cryptocurrencies benefited from the market rally at the beginning of April, BNB continued to outpace the rest, eclipsing its previous all-time high price of $24.50 established in January 2018. However, the price of the currency took a plummeted earlier in the week, as investors responded to news a massive hack impacting the cryptocurrency exchange. The coin has since continued to fall with the broader altcoin market, as BTC surges past $6000 and seeks to further consolidate market dominance.

Binance Coin’s situation makes for an interesting case-study into cryptocurrency. While the currency has become massively popular thanks to its issuance and close-relationship with the world’s leading cryptocurrency exchange, it’s also beholden to sudden turn-of-events such as the most recent hack.

Binance was quick to update investors and traders on the status of the security breach, but reported losing 7000 in BTC in addition to a substantial amount of user data siphoned.

We have discovered a large scale security breach today, May 7, 2019 at 17:15:24 (UTC). Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks. We are still concluding all possible methods used. There may also be additional affected accounts that have not been identified yet.

Binance claims that the stolen funds were taken only from their ‘hot wallet,’ thereby sparing the bulk of investor funds, but amounted to 2 percent of the exchange’s entire BTC holding. However, the exchange was quick to clarify that the comically self-referential #SAFU Fund will cover losses related to the hack, meaning no trader will lose money because of the most recent security breach.

Nonetheless, investors appear wary to trade in BNB as they were just a week ago. Binance Coin may have led the marketplace in price gains since the start of the year, but is now looking at a potentially severe correction as the exchange’s security reputation takes a hit.

Exchange hacks may be a dime-a-dozen in cryptocurrency, but investors are still struggling with the idea of putting money into BNB given its close relationship to Binance. It is worth noting that the currency is capable of operating independent of the exchange–like all cryptocurrencies–but denotes a substantial amount of its value from the activity generated by Binance.

Binance has managed to generate intrinsic value for BNB, particularly to users of the exchange, by offering trading fee discounts. In addition, the exchange requires investors to hold a substantial amount of BNB in order to participate in Launchpad coin offerings, again blurring the line between the centralization of the cryptocurrency and its use as a tool on the exchange.

As of writing, BNB is down over 8 percent on the day, with the price slipping to $19.25. The majority of the altcoin market has also experienced a price retraction, with BTC dominance approaching its highest point since December 2017.

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Weiss Ratings Suggests Binance Coin (BNB) Could be the Next Bitcoin

Binance Coin BNB Weiss Ratings 2019

While the entire market of cryptocurrency has had a strong 2019, one coin in particular has managed to post 300 percent gains since the start of the year. Binance Coin (BNB), the native currency to the world’s leading crypto exchange by volume, has outpaced both Bitcoin and the market with its massive gains over the last month. Given how Binance Coin has, in part, taken the reins of market movement, analytics firm Weiss Ratings is now asking the question: Is BNB the new Bitcoin?

Binance Coin is capable of operating as a standalone, decentralized currency, albeit with a fair amount of influence from its parent company exchange. However, it would be remiss not to point out that the price of BNB has largely benefited from its direct association with the exchange, as opposed to the utility or merits of the coin itself. For one,

Binance incentivizes users to purchase and hold a sum of BNB through several of its programs. Investors can receive a discount on trading fees if they pay with BNB, which is automatically deducted from a users wallet. Binance’s updated launchpad service is also driving the demand for BNB and, by proxy, its price. In order to participate in ICO token sales on Launchpad, investors must purchase–and hold for 20 days prior to the launch–a minimum of 100 BNB. At current market prices that equates to $2300 in BNB. However, investors adamant on participating in Launchpad sales are encouraged to buy and hold 500 BNB to receive the greatest chance of being drawn in the lottery, an amount that would come to $11,500 (about the cost of two BTC).

All of this, in conjunction with the price of BNB rising 300 percent since the beginning of 2019, has led Weiss Ratings to question, via Twitter, if the currency can replace Bitcoin as a market leader. Before today’s BTC price rally, which saw altcoins across the board drop as Bitcoin improved in dominance, Binance Coin appeared to be dictating the direction of the market. BNB posted several consecutive days of double-digit price gains, bringing both renewed interest and investment into the space of cryptocurrency.

As Forbes points out, Weiss has given BNB the same rating as some of the industry’s most prolific cryptocurrency. Ripple’s XRP, EOS, Bitcoin and Binance Coin are the top four cryptocurrencies as evaluated by Weiss, and the only currencies to receive a grading of B-. Even Ethereum, which has been the darling of the industry for several years, scored lower than BNB with a grade of C+.

Binance Coin, seemingly defying odds, has climbed into the top ten of cryptocurrency by market capitalization and is threatening Litecoin for the sixth overall position. The coin commands $3.2 billion in market capitalization, and has room to grow with a circulating supply of 141 million BNB–far less than other coins such as XRP and EOS.

In the end, BNB’s strong ties to Binance may continue to provide enough incentive for investors to take interest in the asset, even at the exclusion of market leaders like Bitcoin. While Binance Coin may not fit the traditional mold of cryptocurrency, or even be the most representative coin for the industry, it does offer traders utility that is hard to come by in other currencies.

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Binance Coin (BNB) Price Defies Odds, Up 300 Percent in 2019

Binance Coin BNB 300 Percent 2019

Binance Coin, the native currency to the world’s leading cryptocurrency by exchange, Binance, has continued to defy odds in its double digit price rally.

While Bitcoin made a strong push throughout the week to close at above $5300, BNB has been the standout cryptocurrency in terms of price movement. The majority of altcoins are experiencing a price regression, giving some indication that Bitcoin may be about to take off. Historically, the interim following industry-wide bull runs, such as the gains created throughout April have turned out favorable for the price of BTC. Investors, rather than cashing out in fiat or transferring to a stablecoin, instead flip their profits into Bitcoin.

However, Binance Coin has continued to gain value, moving against the trend of price consolidation impacting the majority of the market. On April 19, BNB closed on double digit price gains, and is up 4 percent as of writing.

Why Has BNB Price Continued to Rise?

Compared to most of the market, Binance Coin has managed to create a fair bit of utility that extends beyond price speculation. Ironically, the coin that is synonymous with the world’s leading cryptocurrency exchange has managed to generate what the majority of the industry is searching for: a reason to invest in and use outside of anticipated price gains.

Binance and CEO Changpeng Zhao have put together a series of programs that incentivize not only investing in BNB, but holding for longer periods of time. Not only can users conveniently “sweep” left-over and small amounts of currency into BNB, but the coin offers investors a discount on trading fees. The end result is that nearly every investor on BNB has ownership in or incentive to own BNB, increasing the familiarity and liquidity of the coin.

Binance has also instituted a new lottery program for its ICO Launchpad service, which features BNB prominently. As opposed to the old first-come, first-served model that Binance previously employed, the lottery relies upon users being issued tickets in proportion with the amount of Binace Coin they hold. However, investors hoping to participate in the lottery must keep the requisite amount of BNB in their account–as opposed to buying and then dumping the coin in short order–creating an artificial demand on the supply of Binance Coin.

Even without the most recent price rally for cryptocurrency, Binance has created conditions for their native exchange currency that has investors banking on future promotions. Much of the current investment into BNB driving up the price is anticipation that the exchange will continue to find ways to add value to the coin. Given the direction of cryptocurrency adoption, which has been positive and upward throughout 2019 and looking to turn exponential, current investors are looking to the flood of new traders that will enter the industry over the coming years.

Assuming Binance can maintain its position as the world’s leading cryptocurrency exchange, BNB is likely to become more valuable as an increasing number of investors participate on the exchange. While BNB is already up 300 percent since the start of the year, investors believe that number will continue to climb with overall industry adoption.

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The Rise of Binance Coin (BNB) & Exchange Driven Tokens

Binance Coin (BNB), Cryptocurrency, Exchanges–As the crypto markets show a slight recovery from yesterday, with Bitcoin climbing above $4000 again to show a tentative trading range, a little talked about coin is leading the pack in 24 hour gains.

Binance Coin (BNB), the fourteenth largest currency by market capitalization, is up 13 percent as of writing, leaving some to wonder if the model of cryptocurrency is shifting away from the once stalwart approach towards transactions. Most investors have become familiar with stablecoins throughout 2018, with the high profile–and often controversial–Tether USDT holding the eighth largest position in terms of market capitalization. Compared to traditional cryptos, such as Bitcoin, Litecoin and XRP, Tether and the cadre of stablecoins offer relative price stability by pegging their value to an external source. In the case of USDT, the value of of one token is backed by that of a single U.S. dollar. Other stablecoins have experimented with gold and other precious metals, but the reliance upon familiar fiat choices has been the more popular route.

Binance Coin (BNB) operates in a similarly alternative sphere of the crypto-verse. Unlike Bitcoin, which was minted with the sole purpose of operating in the open market, BNB is a growing class of exchange-created and exchange-driven tokens. Like many other currencies minted within the last year, Binance Coin operates as an ERC-20 token built on the Ethereum foundation. While BNB can be bought, spent and traded just like any other crypto, it has the added benefit of providing greater utility on its native platform, such as a more popular trading pair than traditional fiat, and being used to pay trading and exchange fees.

In July, outspoken Ethereum founder Vitalik Buterin blasted the current state of cryptocurrency exchanges as being profit-focused as opposed to promoting the principles of decentralization, leading him to utter the now famous phrase,

“I definitely hope centralized exchanges go burn in hell as much as possible.”

In some respects, Buterin is justified in his criticisms of exchanges which have become the focal point for cryptocurrency and crypto-based adoption. Binance is on pace to top $1 billion in profits by the end of the year, with most exchanges reporting similar record revenues despite it being an abysmal year for cryptocurrency investors and the market in general.

However, currencies such as BNB–despite their close association with the conflicting nature of exchanges–are providing a broader glimpse at the function of crypto in the right context. In lieu of widespread and mainstreet adoption, the microcosm of exchange marketplaces show that crypto does hold a fair amount of utility when given a use. The price of BNB is on the rise, good enough to land in the fourteenth position by market capitalization, because of a recognition by customers that they are not only investing in price speculation for the coin, but that it will continue to deliver value on the established platform of Binance.

Other cryptos could find a similar following and benefit just the same as BNB. While most traditional media outlets have focused on the woe of the following prices for cryptocurrency into the final month of the year, industry stalwarts such as Mike Novogratz have pointed out the contradiction in value: that crypto adoption is broadening throughout 2018 despite the falling price. With real use-cases and an incentive to buy and use, transactional coins like Bitcoin will find their footing in the coming years.

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