Binance Coin (BNB) Price Jumps Following Screenshot of Margin Trading
Binance Coin (BNB) continues to be one of the top earning cryptocurrencies in 2019. Since the start of the year, the native token to the leading cryptocurrency exchange Binance is up over 460 percent, with little halt in sight as the crypto markets turn even more bullish.
As previously reported by EWN, the rumor mill has been hinting at a forthcoming integration of margin trading on Binance. Speaking to community members earlier in the week, Changpeng Zhao confirmed that margin trading was being tested, but did not give a specific timeline on its release.
In a Twitter post published on May 24, the Binance team further added fuel to the speculative fire, with a series of screenshots that seem to all but confirm margin trading is coming in the very near future. While the post was making a tongue-in-cheek reference to their “dark mode/light mode feature,” the screenshot clearly displays the option for margin trading–a feature which is not currently available to traders.
“Dark mode ? or Light mode ?? #Binance”
BNB responded in price to the news, jumping 9 percent as of writing and outpacing the gains of Bitcoin and most other top ten cryptocurrencies. While Binance is still not giving an exact date on when margin trading will hit the exchange, Changpeng Zhao claimed it would occur “very, very soon,” with the caveat that large-volume traders will have first access.
Despite suffering a $40 million hack in early May, Binance has continued to be a leader in the space of cryptocurrency exchanges and has paved the altcoin market valuation with the gains of BNB. While some have taken fault with the exchange’s handling of the hack, they remained transparent through the process of their security upgrades and were quick to notify investors that losts BTC would be covered via the #SAFU Fund.
Binance has also made a strong effort to boost the intrinsic valuation of their native token, at least in the eyes of investors looking to find fundamentals in the cryptocurrency market. While crypto may act more akin to a volatile currency than an actual digital asset, Binance has done its part to provide reason for traders to invest in BNB. The currency provides a discount on trading fees and is also required–in an increasingly large amount at today’s price–to participate in the Binance Launchpad lottery.
Given the trajectory of the exchange’s decisions to date, it’s possible margin trading will somehow feature into the use of Binance Coin. While the exchange has yet to make any statement on user access, it could require an account minimum of BNB, similar to the exchange’s requirements for Launchpad. Such a move would likely take the price of BNB even higher, although the exchange would have to contend with a realistic BNB holding at its current valuation.
Already investors are required to have 500 BNB valued at $17k, in order to receive the maximum amount of lottery tickets and insure their highest chance of Launchpad buy-in. If the price of Binance Coin continues to climb, Binance could buffer all but the highest-capital investors.