New Binance Coin (BNB) Report by eToro Defines It As An Utility Token and Likely A Security
eToro has recently published a report on Binance Coin (BNB) after it has listed the coin on the platform. It is important to notice how unlikely this was as it was the first time that an exchange decided to list the token of another exchange in the history of crypto trading.
BNB was listed alongside other important cryptos like Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH). The report, which defines BNB as an utility and “possibly a security” was part of the detailed report that eToro makes to all the assets that it decides to list on its exchange.
Both An Asset An A Security?
The most interesting result from the report is that Binance Coin was defined as both a utility and a security. This shows just how much the definition is very unclear when you are dealing with this kind of new digital asset.
As Binance had an Initial Coin Offering (ICO) in the middle of 2017 and some investors who got their BNB tokens expected benefits from investing at the time, everything would point out to BNB being a security, however, the token is used clearly as a utility on the Binance site. This way, any country will have its own interpretation on what BNB actually is.
The senior market analyst at eToro, Mati Greenspan, which authored the report, explained the problem. While anyone can have access to Binance without BNB and it only entitles the user to benefits in the platform like lower trading fees, the asset can a utility but it is tied to the performance of the company, which could be understood as a characteristic of a security. There is simply not a clear and unique line of thought.
More Information About Binance Coin (BNB)
The report made by Greenspan also acknowledges how Binance’s ICO was one of the most successful ones of 2017 and how the exchange is very well prepared for the future under the leadership of Changpeng “CZ” Zhao, which is now one of the most powerful and influential figures in the crypto world.
It was also reported that BNB is reported to be used in support of new ICOs on the launchpad of Binance and that there are incentives for users to hold more tokens and that they grant discounts for the users.
The Binance Chain was still not created at the time and Binance still uses the ERC20 tokens of the Ethereum blockchain.