Impressive Binance Coin (BNB) Performance Makes the Case for Crypto Exchange-issued Tokens
The crypto market is working hard in order to stabilize itself, the situation is still far from perfect. Bitcoin itself is constantly going above and below $4,000 and is currently experiencing another slight drop that has brought it down to $3,891 at the time of writing.
However, one coin has blown up amidst all the chaos, and this one is not even among the top 10 cryptos. We are, of course, talking about Binance Coin (BNB).
Binance Coin On The rise
BNB has grown quite a bit in the 24 hours, and it even managed to outrank IOTA (MIOTA) in the process. The coin is currently holding the rank of 13, just between IOTA and Monero. At the time of writing, the coin is experiencing a surge of 18.36%, with its growth rate itself being on the rise.
According to experts, this could have interesting consequences on the way investors view crypto, and it is possible that the model of cryptocurrency is about to shift towards coins used for transactions.
This year was a good year for a lot of stablecoins, and even the highly-controversial Tether still remains within the top 10 coins, currently holding the 7th position. Despite this, Tether and other stablecoins remain popular and used due to their price stability. This single feature is extremely important in such a bearish period, where every investment seems to be doomed to fail from the start.
While most stablecoins are backed by fiat currencies, such as the USD, there are also those that have experimented with precious metals, oil, and other assets.
However, Binance Coin is a different type of cryptocurrency. It certainly not a stablecoin, but it is also different from Bitcoin, which is used in the open market. BNB is an exchange-made and exchange-driven coin. While it is not the first of its kind, it is among the best-known representatives of this type of coin.
It was, obviously, developed by Binance, which used Ethereum's blockchain for creating the token. Of course, it can be used just like any other crypto, although it should be noted that its utility increases if it is being used on its native platform.
Will Other Similar Coins Soon Emerge?
Some members of the crypto community believe that coins such as BNB are focused on making a profit, which is something that Ethereum co-founder Vitalik Buterin claimed as well. He was quite clear and harsh in his criticism towards such coins, that do not promote decentralization, in his opinion.
While his criticism is justified in some respects, there are also many who believe that BNB-like coins are capable of providing a better insight into how crypto should be used.
At the moment, BNB value is surging, and the coin continues to grow. It is recognized by investors, it is backed by a reputable company, and it provides additional benefits when used on Binance. All of these things are beneficial to those looking to make a profit, which is why coins like this may have a larger role to play in the future of crypto trading.
The big question now is whether or not this will launch an entire trend, with each exchange having its own version of BNB. While most people are trying to predict what will happen to crypto in the final weeks of 2018, there are some who are looking further into the future and are trying to predict trends of 2019. Most of such predictions are positive for crypto, although whether they will actually come to pass is still uncertain.