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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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Binance Coin (BNB) Price Skyrockets Following Launchpad Update

Binance Coin BNB Price Cryptocurrency

While Bitcoin has slipped below the critical $4000 mark after several days of low price volatility, Binance Coin (BNB) was one of the largest price gainers over the weekend.

Binance Coin, the native currency for the world’s leading cryptocurrency exchange by volume Binance, pumped over 12 percent yesterday on news that the exchange was updating its launchpad operation. Previously, Binance’s launchpad service operated as a first come, first served platform for users looking to invest in new coin projects.

Now, with the most recent update, users will be required to obtain tickets to participate in the token sale, with investors chosen randomly through a randomized lottery system. The more tickets an investor holds, the more opportunities they have to enter the drawing and thereby increase their chance of participating in the launchpad coin sale.

However, the new policy has massive ramifications for Binance Coin. As opposed to purchasing lottery tickets or applying for them, users are issued a corresponding number of lottery tickets relative to their BNB holding. The more Binance Coin an investor holds, the more lottery tickets they will receive to enter in the launchpad sale, with 500 BNB being required to receive the maximum five tickets.

In addition to using Binance Coin to facilitate the new lottery system, the company is also requiring a minimum BNB be held in user accounts to even be issued a single ticket. The end result is that investors who wish to take place in Binance Launchpad token sales will be required to hold at least 100 BNB in their account in the 20 days leading up to the sale to even be considered for the lottery–let alone actually be selected via the lottery. Active investors of Launchpad sales will likely want to up their chance of participation, requiring the purchase and holding of 500 BNB to maximize their lottery ticket position.

At a price of $16.31 per BNB, as of writing, Binance users are looking at an investment of over $1600 to even participate in Launchpad coin sales. Savvy investors immediately recognized the boom in demand that would accompany Binance’s new policy, with the price of BNB skyrocketing double digits yesterday despite overall lackluster market price moves.

On one hand, Binance’s new lottery policy provides a more even playing field for investors looking to participate in coin sales without the hassle of being the first to enter a purchase on Launchpad. However, the policy change also has the indirect effect of increasing demand and use for BNB in a way that should benefit Binance and current Binance Coin holders. In addition, the details listed in the policy require investors to hold their BNB over the course of 20 days leading up to the new coin launch, which prevents regular cycles of Launchpad enthusiasts purchasing and dumping Binance Coin just for lottery tickets.

It is possible that Binance’s new policy could backfire on the exchange in the event that users tire of having to purchase and hold BNB. The lottery system also throws a measure of luck into the investment process, with users being required to commit to a predetermined amount of coins to be purchased in the event that their wagered lottery ticket is drawn at random.

Nonetheless, the company has managed to initiate a policy that both gives the appearance of increased fairness in the Launchpad process, while also increasing the value of Binance Coin.

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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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