Name/Symbol: Binance Coin (BNB)
Price: $14.74 (+30.64% 7 Days/ +65.54% 30 days)
Coin Ranking: 7th
Market Cap : $2,100,220,883
Wallets Available: Desktop (PC, Mac, Linux), Android & IPhone
This is one that we should’ve featured a while back, it has actually been almost featured by us at least a dozen times in the past year, but what can you do?
Not that we missed the boat on it but rather the contrary, it seems like now it’s a much less well kept secret, and more of a top elite blockchain token these days, recently breaking onto the top 10 list.
For those of you who are unaware, Binance and their product Binance Coin (BNB), is one of the largest Cryptocurrency Exchanges in the word, and have been this way seemingly since their initial launch.
Their initial location was based in China, however in less than two years they’ve expanded across the globe with multiple branch offices throughout the world. Their most noteworthy location is in Malta, what makes this location significant is that beyond just the branch office, they are the first major Cryptocurrency Exchange to be approved and regulated by the MFSA (Malta Financial Security Authority), showing the public their willingness to operate under the eyes and scrutiny of a major European Regulatory Agency.
BNB was first issued and released as a token publicly shortly after the initial launch of Binance’s Exchange and trading platform in July of 2017. It is offered as a base token on their exchange, allowing traders the ability to trade it against over 80 other tokens, In addition to trading options, holding any about of BNB in your Binance account enables those tokens to be used to pay all trading fees, which when paid in BNB leads to a significant reduction of cost per trade.
Part of Binance’s success has been in both in what they do offer as well as what the do not.
As an exchange Binance offers a greater variety of tokens to trade in than their United States based counterparts, exchanges such as Coinbase & Gemini. However what Binance lacks is the ability to facilitate fiat currency based deposits, any deposit into Binance must be done directly in Cryptocurrency. This creates a sort of harmony among the preexisting “Cyrpto-Giants”, avoiding getting locked in as a one for one direct competitor with a United exchange like Coinbase.
To elaborate, for a person who’s living in the United States, and looking to trade one of the hundreds of tokens that are only available on Binance’s Trading Platform, they would first need to open an account and send their USD to Coinbase or an equivalent Cryptocurrency Exchange, convert their USD to BTC, and then transfer those BTC to Binance. The same goes for liquidations as well, the trader would need to send a Coinbase traded token back to Coinbase from their Binance account, once there they could then liquidate said token back to USD and request a withdrawal to their bank.
How Has Binance The Exchange Done With This Business Model Since Their 2017 Launch?
Just google “Binance Exchange’s Profitability”, you’ll see dozens of articles with claims such as, “Binance is on track to make 1 billion in profits in 2018″, or “Binance Profits Rival Nasdaq but with 4% the staff”
Clearly they’re doing something right!
They are a textbook case of being at the right place at the right time. As they continue to grow in size, their technology development teams continue to roll out new trading products such as local based exchanges and upgraded trading platforms all while constantly offering liquidity on new tokens nearly every week.
BNB doesn’t seem to be going anywhere as long as Binance is around, and with how well things seem to be going it’s also a safe to predict that Binance is likely to be around as long as Cryptocurrency continues to trade. All this makes BNB a great long term buy and hold option. If you already have or are building a diversified Cryptocurreny Portfolio, a percentage of it should be reserved for BNB, it’s off to a great start for 2019 and will no doubt be a profitable long term hold.