Why Binance (BNB) Coin Is Creating Heat In Cryptocurrency Markets
Binance coin or BNB is the relatively new native token for the Binance exchange platform. And although the existence of the currency is distinctively brief, Binance has plenty to show for its eight-month life. From raising a 1B revenue with less than 200 employees to an almost 200% increase in price value in a few months, there is plenty to watch out for concerning Binance's future.
Gathering The Numbers
It is evident that cryptocurrency is the new in-thing, and the Binance exchange is highly riding on this notion. As the largest cryptocurrency exchanges, Binance has over 10 million subscribers, with trade volumes reaching $1 billion on a daily basis. The Binance coin is also on a similar upward trend. However, the figures have a background twist as to what is fueling them
- Fees- With an exchange fee of 0.1%, Binance provides for one of the cheapest options, and this is an excellent selling point. Additionally, holding the BNB tokens gets you an extra 50% reduction in the fee.
- Faith in the Binance exchange is openly evident with even Malta's Prime Minister providing a “safe crypto haven” option for the company when it was facing regulatory measures within Hong Kong.
- The “Burn” effect- Binance will offer a solution in the form of token burning to avoid making their coin worthless with the discounts, and this creates an artificial shortage which increases value.
But Binance Is Under Pressure From Regulations?
A significant point of concern for the financial watchdogs is the low level of KYC that one needs to start using Binance exchange. While sceptics point out the user verification as a point of risk, Binance coin has taken the liberty to move its bases to the crypto friendly nation of Malta.
Regardless of the market pressure surrounding the exchange, Binance unbows to pressure by maintaining its number one position as an exchange. Additionally, with the working product behind the Binance coin, the token holder still gets to gain despite the average crypto volatility. All-in-all, I do anticipate an even new future path for Binance and its currency BNB tokens.