Binance Coin’s Rally Harkens to Bitcoin’s Best Days: What Can Come of The Recent Mini-Run?
Binance is doing well and its performance reminds some of the best days of Bitcoin. Binance’s coin’s (BNB) value has tripped in the last three months to approximately $15. The exchange as co-founded by Zhao Chanpeng in 2017. Unfortunately, Changpeng is known for issues with authorities and is now allegedly somewhere in Europe.
According to Tushar Jain, Multicoin Capital Management’s managing partner, “This is the best executing team in crypto. We expect to hold them for the foreseeable future.”
Binance’s success can attributed, in part, to its system. The platform is used by those who hold the coin to pay the exchange’s fees. It is also a prime platform for initial coin offerings. In addition, the platform connects its exchange’s performance to the tokens in circulation. The platform also changed its strategy to trying and decrease Binance coins. According to Changpeng, “We don’t want to the price to drop, to be negatively impacted. We are very much aligned with our investors.”
Of course, there are also concerns with the strategy, which is what happens in the event that the coins are designated as a security. If the coins are a security, the strategy to purchase the coins back requires the platform to follow regulations. As Changpeng stated, though, “Personally, I don’t think it’s a security. I don’t think that there’s any regulation against destroying assets you hae yourself. In the worst case, we can stop the burning process.”
Binance is also in the process of working on a public blockchain to transfer and trade digital assets. The exchange expects it to launch what it calls Binance Chain in a few months. Upon being launched, Binance Coin will be moved to it from the Ethereum network. It will then be used to pay various transactions and listing fees. Such moves may continue to boost Binance’s value, which ahs increased $400 million last year.