Profits of Binance’s BNB Coin Will Not Be Shared with In-House Token Holders, Amid Regulatory Difficulties


A new Q&A session was recently hosted on social media by Mat Greenspan, but it roped in CEO Changpeng Zhao of Binance, discussing a range of issues. One of the questions turned the attention to profit sharing, as the Twitter user asked if BNB would be offering this benefit to holders, “like other exchanges?” After Greenspan urged Zhao to take on this question, Zhao informed the user that sharing the profits would turn BNB into a security token, and the community would not want to see that transition.

The value of BNB has seen substantial gains while the token has been used for discounts on fees, among other activities. The token is residing at the eight-highest place on the CoinMarketCap website, based on its market cap. However, the fact that the token is not considered security has made it possible for them to avoid regulations set forth by the Securities and Exchange Commission.

Debates over what qualifies as a security has been a hot button issue, especially concerning the #3 crypto asset on the charts – XRP from Ripple. The discussion over this token’s potential classification as a security has been ongoing amongst commentators in the crypto world, and Zhao does not plan to be involved in those talks in any way.

The goal of being exempt from securities laws points to a bigger trend going on in the crypto industry, as exchanges modify their activities to eliminate their chances of regulatory difficulties. Bittrex has been an example of an exchange that aims to split US traders from non-US traders by examining the tokens they take on with careful scrutiny to make their battle with regulatory obligations unnecessary. As such, they have protected themselves from certain complications that would worsen the situations.

BNB, at least for now, has continued to garnish attention from investors without any worry about securities laws, thanks to Zhao’s caring nature. Analysts have been sifting through the public data on this token, and Zhao has even said that a recent analyst’s report on its value in February was so thorough that it was “almost scary.” Written by Kyle Samani of Multicoin Capital, the report basically suggested that the value of the token is underrated.

Presently, BNB/USD is trading at $13.54, boasting an 18.98% gain in the last 24 hours. The only other token to even come close to those types of gains in the same time frame is Litecoin, increasing by 14.2% and holding down the #5 spot on CMC.

https://bitcoinexchangeguide.com/todays-coin-price-watch-btc-eth-xrp-and-bch-cryptocurrency-chart-predictions/

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