Two years down the line and Binance Coin (BNB) is still gaining popularity among crypto users. BNB recently broke into the top-10 as ranked by market cap tagging with it new investment considerations as well as better liquidity. The Coin is the native asset created by Binance exchange, the first of its kind in the buisness.
Notable, since mid-Dec, the coin has soared 7.5X, testing lows of $5 before rocketing to $39 at the time of writing. Launched in 2017, BNB was created to help the exchange in paying startup expenses like hiring new developers, marketing, and bolstering the security of the exchange servers. In the ICO stage, the token raised $15 million. Eventually, users began using the coin to pain for transactions fees on the platform.
However, recently, there have been a lot of controversies around the coin and its creators, Binance. Many in the crypto community have questioned the value proposition of BNB and whether investing in the coin is channeling funds into a security. Amongst other questions, critics are probing were the source of the asset’s liquidation value and what the asset’s true value is in.
Investor’s Point Of View
Nonetheless, people keep investing in BNB despite the various uncertainties around the coin. Some have urged that since the pricing from the supply and demand dynamics for the 99 million BNB coins already in the market show an excellent effect on the coin’s future.
Meanwhile, many are investing in the coin because of the low cost of transactions and how it is cost saving especially for day traders in Binance. Note that BNB can be used in buying other coins in place of Bitcoin because it is quite affordable. Using BNB for transactions could reduce trading fees up to 25 percent. Additionally, you can freely trade BNB against other coins in the Binance platform while concurrently qualifying for a ticket should they need to invest in any of their IEO.
There is also high confidence in the coin gained from Binance operations. Most…