The industry is flooded with crypto coins and tokens and many of them are gung-ho on their future. But not all cryptocurrency has been able to find a use case. That’s what makes Binance coin different from others as the coin had a use case from the day one it entered the market in July 2017. Since then, the coin has been rewarded well by the investors and today it has moved to the number 14 position in terms of market cap.
Binance Coin and its varied use cases
Binance Coin an ERC 20 token issued by Binance exchange, and trades with the BNB symbol. The coin was launched in 2017 with a definite use case, to reduce the brokerage of traders who used this coin to pay their trading fees. As the coin developed and gained importance, its use case of BNB also stated expanding. According to the recent post put up by Binance, the exchange has listed down some uses cases. They are
- Paying for cryptocurrency trading fees on Binance (with discount perks)
- Spending on goods and services across many establishments
— Michael Arrington (@arrington) August 18, 2018
— CZ Binance (@cz_binance) September 11, 2018
- Securing money in times of need
- Having fun with Binance Coins on social media services
- Earning a salary
- Storing on various wallets
- Trading as an altcoin
- HODLing for later use on Binance Decentralized Cryptocurrency Exchange (DEX) and Binance Chain (or on any random date you prefer)
- Using on blockchains integrated with Binance Coins
While Binance has been growing in size the investors too have been rewarding it as the continue to infuse money into the coin released by the exchange.
Binance Coin is Now the Only Top 50 Crypto with Positive Returns for 2018
In late August this year, Binance CEO Changpeng Zhao – better known by his acronym CZ –tweeted saying that he was “honoured” as he replied to a tweet sent out by one Twitter user who has calculated that BNB is now the only top 50 cryptocurrency whose performance in calendar year 2018 to date has been positive.
wow, honored. Don’t worry, I think the cycle should be complete soon, given the mainstream news coverage of events. Understand blockchain and crypto is not going away, other than the non-believer speculators that was shaken out (they will come back), adoption is increasing. https://t.co/lI3BkMRbt9
— CZ Binance (@cz_binance) August 23, 2018
The Twitter user, named Cryptokita, who had done the calculations had graphically captured the carnage that cryptocurrencies had gone through since they hit the record high of January 7th 2018. Since then the combined market cap of all crypto assets – as defined by CoinMarketCap – has fallen from approximately $820bn to a little over $218bn at the time of writing, a fall close to 75%.
The statistic has come as particularly good news for Binance employees, 90% of whom – astonishingly – have chosen to accept salary payments in the platform’s native BNB coin. Binance’s business model incorporates a buy-back mechanism in which 20% of the platform’s profits are used to purchase and then subsequently burn BNB token at the end of each quarter, meaning that its supply has continued to dwindle since the platform first went live in July 2017.
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.