The Binance Exchange ICO was a huge success to the point where one year later, the exchange flip flops between the number 1 and number 2 positions on coinmarketcap.com and according to daily trade volume. Right now, the exchange is at its usual number one position with $1.486 Billion in daily trade. Sometimes, this daily trade volume was as high as $2 Billion earlier on in the year. This is an amazing feat by the exchange.
The token that was key for the ICO and exchange was Binance Coin (BNB). According to the whitepaper, there would be 200 Million tokens created with 50% being offered to ICO participants. The amazing thing is that if BNB is used to pay for trading fees on the exchange, a discount is given to the trader according to the rates below.
So why is Binance Coin (BNB) such a good buy?
Firstly, and looking at the general market trend of the coin, it keepsgoing up. This can be seen in the one year chart below. To note is that the spike in the middle, is the time period between November 2017 and January 2018 when crypto trading had skyrocketed all over.
Secondly, the team at Binance does a BNB coin burn every quarter as part of the design of the exchange as illustrated in the whitepaper. Each quarter, the exchange uses 20% of its profits to buy back and burn BNB up until a total of 100 Million BNB are burnt. However, the exchange does not notify the users of a pending coin burn. It announces the coin burn after the fact to avoid some form of market manipulation in the crypto markets. This can be seen in announcement in January that stated the following.
Fellow Binancians,
In accordance with our whitepaper, we have now completed the burn of 1,821,586 BNB for the our 2nd quarter.
Thanks for your support!
Binance Team
2018/01/15
The current circulating supply stands at 114 Million BNB with a total supply of 194.972 Million. This means that the exchange has burnt some 5.028 Million BNB coins thus reducing the supply and consequently helping the value of BNB to go up as can be seen in the chart that was shared.
Thirdly, the exchange has plans of opening exchanges in both Uganda and Malta. This provides the exchange with a broader reach to attract new users who will in turn use BNB. With more users, comes more visibility for BNB and more trading. The trading generates profits for the exchange that will be used to buy back BNB to be burnt. This cycle will continue until there are only 100 Million BNB. This means the value of BNB will continue to inch closer to the Stratosphere!
In a nutshell, the digital asset of BNB has everything good going for it. There is a structured coin burn; a strong team behind the crypto exchange; plans of expansion of the exchange; a proven track record of constant gains; as well as initiatives such as the 40% referral bonus for anyone with over 500 BNB in their Binance account.
