Binance Coin (BNB) Passes IOTA to Become 12th Crypto By Coin Market Cap
Changpeng “CZ” Zhao is probably very happy now. Binance Coin (BNB), the official crypto used in the largest crypto exchange of the world by trading volume, has just passed IOTA and it is now the 12th largest token by market cap in the crypto industry.
At around 1 pm GMT today, BNB reached a market cap of $856.6 million USD, its biggest since November 20, 2018, a month in which the crypto industry took a very strong hit from the bear. IOTA remained at $807.1 million USD, lagging fairly behind the official token of the famous exchange.
This is the result of a trend that started on January 3. During the last 20 days, Binance has been able to push its token up while IOTA was in a slow but steady decline. They officially traded places in the ranking by January 23 and the trend was solidified today.
Why Is BNB Up? New Jersey Exchange And Decrease In BNB Supply Helps
Part of the reason for the prices going up is that Binance has a very strong plan, but some aspects are more prominent than others. One of them was the company opening its new Jersey exchange, which is set to cater to the United Kingdom and the European Union, as it paired BNB tokens with EUR and GBP.
The move was made to coincide with the Brexit, as the CFO Wei Zhou affirmed. Many UK investors feel insecure about the whole event, so now it is a good time to offer them more token investments. This was a great reason why there are more people buying BNB now.
Expansion is always a bullish sign for investors, so many of them saw this as a great chance to invest in a token that was already going up before the event happened.
Another important fact that is making investors excited is that Binance is set to launch its own ledger, Binance Chain. The new chain would help companies to create their own Initial Coin Offerings (ICOs) and create tokens using BNB as a basis, just what Ethereum (ETH) offers.
With plans for launching a decentralized exchange soon that would use BNB tokens, the coins get even more valuable in the market.
Finally, there is the quarterly BNB burn round. By burning 20% of its tokens that are received by trading fees, the exchange actually deflates the price of BNB and make it go up in the market. The burning protocol is automatic and will burn the 100 million BNB tokens that were sold during the ICO, an ingenious plan, really.
wow, didn't see this until now. 12 is the new 13.
— CZ Binance (@cz_binance) January 25, 2019
Basically, by having a really good plan and focusing on always offering the best possible services for its clients, Binance is slowly creating one of the strongest tokens in the market. Nobody will definitely be surprised at all if BNB actually enters the Top 10 soon.