Binance Coin (BNB) is the utility token/coin used in the Binance Exchange. If you have traded in Binance then you know about the Binance Coin.
The recent steady rise of the Binance Coin is due to their new exchange features which is their launch pad. Before we get into that, why don’t we start with the basics that make the Binance Coin rise?
The 50% Discount On Trading Fees
If you are a trader, wouldn’t you like your trading fees as little as possible? This gives the traders an incentive to hold some BNB in their accounts to be used for fees.
My mobile app says 50% discount but on Web, it is saying only 25% but whether 25% or 50% discount, everyone would like to have those discounts.
The Binance Coin Burn
According to the exchange’s whitepaper, every quarter, Binance will use 20% of its profits to buy back BNB at market value and ‘burn’ them, removing said tokens from the overall circulating supply. This process will continue until 50% of all BNB are burned, or approximately 100 million tokens/coins.
This coinburn will definitely increase the value of the BNB coin. Just imagine the price per 1 BNB coin when there is only 100 million tokens/coins left and people will still want to have them to be used for their trading and buying in on the Binance LaunchPad.
The Binance Launch Pad
The Binance launch pad would be the main reason why the price of BNB is continually rising.
The Binance launch pad is the new platform in binance where a new project will issue their ICO.
On this launch pad, only the BNB coin is used to buy in on the ICO (with the exemption of BTT where TRX was also used). This will bring more demand for the BNB coin.
The Binance DEX (Decentralized Exchange)
This is still on its test phase but I think it will be released soon. This is to give people the option if they want to trade in a secure and reputable decentralized exchange and the trader or user have control over their wallet. Meaning the trader owns the private keys of their wallet used for trading.
More options to trade in, more users will get on board. This, in turn, more BNB coin users.
This is not financial advice or investment advice. Everything we cover here is my experiences, opinions and what I would do. Please do your own research.