Well the fabulous move on Binance Coin continuous to move forward as the coin has taken over Tether now to grab the 7th place on the list of coins ranked by their market caps. In very early morning Asian trades, the coin inched towards the USD 15 mark with a gain of over 6%
Is Binance Coin the “New Bitcoin”? Well that’s what Justin Sun says
Binance coin has been the talk of the town for over a month now as the coin has been one of the top performers of 2019. Starting the year at a low of USD 5.90 in January the coin has been on a relentless rally. And now a couple of months later, the coin now sits at USD 14.55 with a surge of nearly 150 % which by far has out performed the market.
In terms of ranking the coin did not feature even in the top 30 being ranked at 31 of the list of coins arranged by largest market cap. But thanks to the rally, the coin has moved to a all time high position of 7th. This rally has been appreciated by many in the industry including Justin Sun of Tron calling BNB coin the new Bitcoin
— Justin Sun (@justinsuntron) March 5, 2019
Mati Greenspan also tweeted about BNB’s rally and also mentioned that how its become a darling of traders over last two day with Mati himself holding positions on the coin.
Closed my 2nd trade on $BNB. Still holding a small position for long term, but need to take some profits after a rip like that.
This is not trading advice!! pic.twitter.com/LdnpNbmDHO
— Mati Greenspan (@MatiGreenspan) March 6, 2019
BNB doing things right fundamentally
Although the rising volumes across exchanges are the larger contributor to this rally, one thing that is proving to be a catalyst to this BNB’s rise is the coin is doing everything right fundamentally. The launch of Binance DEX the company’s new decentralized exchange that utilizes BNB as a base pair, has got everyone’s interest into the exchanges native coin.
According to CZ, more than the Binance DEX, it’s the coins increasing use cases, probably larger than any other coin, is actively pushing for the adoption of BNB in the real world, with an increasing number of platforms announcing support for the coin in recent months. A tweet in November had highlighted the coins rise amongst platforms when the exchange had launched a #USEBNB challenge
— Binance (@binance) November 4, 2018
CZ recently conducted AMA session which also reassured that the coin was doing everything possible to reach the top and Binance was also providing every ingredient of its growth. The full video could be found here
— Binance (@binance) March 5, 2019
Rally is Good But BNB, not a security token
While all looks great for the coin, a few analysts on the street caution the BNB is a utility token and not a security token and hence all the profits that Binance makes from BNB use case will stay with Binance and not distributed to its holders as dividends. CZ too had tweeted and clarified it
No, that would make #BNB a security, and you don't want that.
— CZ Binance (@cz_binance) March 4, 2019
Mati Greenspan, while making profits on trades with BNB, cautioned people about the same
Friendly reminder: Yes, it's fun to trade on $BNB momentum. Please remember that it is a utility token. It is not a security and does not give you shares in Binance profits. Nor is it a money coin with mass adoption.
That is all. Stay safe.
— Mati Greenspan (@MatiGreenspan) March 6, 2019
As the crypto traders are speculating that volumes in BNB will continue to grow and that Binance will maintain a significant share of those volumes, the coin is seeing this rally. But the caution of BNB being Utility token can halt the rally once the volume starts dropping.
How long do you think the BNB rally will continue? Do let us know your views in the comments.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.