Binance (BNB) is a well-known name to most of crypto enthusiast who have bought cryptocurrency before; the popular coin exchange has been highly bullish in trading volumes over the last few months. The team in Binance launched an ICO besides the exchange, the BNB token which is currently among top 20 altcoins in market capitalization. As is the case with most platform and coins the BNB is an ERC20 built token with a limited supply of 200 million coins in future.
The introduction of the BNB token as a means of payment in the Binance platform is not aimed at kicking out other cryptos from the platform but value addition mostly. The BNB token comes with a couple of incentives for users in form of rebates as they make payments on the network which are rewarded according to length a user has been holding the Binance token.
Binance Coin (BNB) Prospects
The BNB token enjoys a competitive advantage from its direct link to one of the most popular coin exchanges as of now, Binance. This is expected to increase the adoption rate of the Binance token in the long run as more users opt for cheaper transactions means within the Binance platform. Binance has adopted a strategy that will eventually see the supply of BNB token reduce although some coins will remain in the crypto market even for transaction purposes.
This is one of the tokens that can clearly distinguish its fundamental value as of now, unlike most cryptocurrencies the BNB token is currently built for the Binance exchange. Investors’ who are bullish on the crypto market can allocate lower risk and higher returns linked to Binance with a higher probability than most cryptos. The team has come up with very lucrative incentives in form of rebates which so far have been important in adoption of the coin. Most investors who started trading with Binance early enough have already realized huge profit margins linked to reduced transaction fees.
One of the things we crypto community expects to see from Binance (BNB) in future is growth of the coin’s value as a result of add-ons that will use the Binance cryptocurrency. With the growing crypto world this is not far from achievable since industry players like Launchpad have in the recent past launched an ICO which implements the BNB coin for transactions.
Advantages of Transacting with the BNB token
- Ease of Purchase
Most cryptocurrencies have been skeptical on foreign investors especially from the USA; this is because of the compliance most would have to do. Binance exchange so far has been accommodative of crypto investors with very minimal constraints when it comes to purchasing.
- Ease of Conversion and Withdrawal
Binance exchange comes with convenient withdrawal flexibility at a limit of about $30,000 which doubles that of Bitcoin. This is not common with most exchanges given the fundamental value BNB token adds to the exchange that further eases the conversion of cryptocurrencies within the network.
- Friendly Transaction Fees
The BNB token makes costs associated to transactions almost disappear given that Binance exchange is already popular for its accommodating transaction fees. Rebates given to coin holders for the next five years at a decreasing rate make it favorable to trade using the BNB token as of press date.
The BNB token currently trades at $13.16 with a total of 99,014,000 coins in supply. The interesting fact about these tokens is that they are only traded in Binance but have managed to attain a market cap of $1,303,341,085 in less than a year. The price of the Binance(BNB)has been bullish in the past week increasing by over 30%. However, this cannot be used to predict a lot in the volatile crypto market which has seen the price of the BTC fall below $10,000 after it had hit the high of $20,000 towards the end of 2017. The small cap token has a liquidity of 2.78% and is expected to vary with a standard deviation of 14.3% according to DigitalAsetDB. BNB currently leads the small cap tokens in trading volume at an average of $35.31 million within the last 24 hours.