Binance (BNB) Coin continues its rise with the announcement of a new update to the Binance LaunchPad Token Sale Platform. The price of Binance (BNB) Coin at 4: oo Hours UTC on 25 March 2019 is 17.08 dollars. It is trading 14.2% higher on the daily scale. The total market capitalization of the Binance (BNB) token is nearing $2.5 billion.
Binance coin is gained 180% since the beginning of the. The rise of the Binance (BNB) Coin is backed by the utility added to the cryptocurrency by the Binance Exchange with every day. Moreover, the new update has also received criticism of favoring the whales and the pushing the price of the Binance (BNB) Coin.
Binance LaunchPad Update
Binance LaunchPad is a platform introduced by Binance Exchange to facilitate the launch of new cryptocurrency on its platform. The success of the LaunchPad Platform is commendable; the BitTorrent (BTT) token and Celer cryptocurrency sale were completed in minutes after the launch.
Huobi and Okex have also initiated similar platforms based on Huobi Token (HT) and OkJump Start. However, Binance is leading this aspect of cryptocurrency as well along with being the highest ranked Exchange w.r.t. Total volume.
The changes introduced in the Launchpad include a ‘lottery system’ in place of the first come-first serve scheme for ‘new tokens’ announced on the LaunchPad. The users will now have to ‘hold’ Binance (BNB) Coin 20 days before the launch of a new token. The users will then be assigned a particular number of ‘lottery tickets’ depending on their BNB balance during the 20 days. The winner of each ticket will then be allocated a $500 slot to purchase the ‘new cryptocurrency’ on Binance LaunchPad.
Each user’s BNB balance will be recorded in a snapshot at 0:00 AM (UTC) each day. Should a user’s BNB balance drop below the minimum balance required on any given day during the 20-day period, they will be put into the lower threshold.
BNB is up 15% in the last 24 hours while most other coins are trading sideways. pic.twitter.com/MzpG0IXxce
— CryptosBatman ⚡ (@CryptosBatman) March 24, 2019
Criticism Against The New Update
The minimum balance required to earn a ticket is 100 BNB. According to current prices, it amounts approx. $1700. The new scheme of the LaunchPad also does not guarantee a return, it just gives an opportunity to participate in the token sale. Hence, the risk involved for the users is significantly more.
We also strongly recommend that you don’t hold BNB just to participate in Binance Launchpad events. If you don’t want to hold BNB otherwise, then please don’t hold BNB.
The new Scheme of the LauchPad also essentially makes it very difficult for small-scale investors to participate in the Launch. Hence, the move is inclined to favor the ‘whales’ more.
Moreover, the LaunchPad hysteria and schemes reminiscence of the ICOs conducted during 2016-2017. The Exchanges have taken an innovative approach to expanding their business. It also increases the value of the token increasingly as its ‘Hodling’ will rise over a more extended period. However, the idea of a token launch on a significant Exchange often attracts more euphoria than required.
If new ‘tokens’ continue to gain traction, what is the predicted price of Binance (BNB) Coin in 2019 according to you?
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com