Why >9000 percent Increment is Nothing for Binance Coin (BNB)
Binance CEO, Changpeng Zhao (CZ), recently tweeted an image from CoinMarketCap which shows that the return on investment for Binance Coin (BNB) is well over 9,000 percent. The tweet has subsequently sparked a debate online, with most people of the view that the cryptocurrency could surge higher.
It’s Hard to Know the Peak Value for Binance
Following the tweet by CZ, a debate is now raging with participants keen on cracking the
true value of BNB and sprawling Binance ecosystem. There are some who believe
that Binance Coin (BNB) is peaking. However, some market participants disagree,
adding that it is hard to quantify the height of a company like Binance.
According to Crypto Kid BNB, it is impossible to determine the peak for Binance’s coin
since we can’t measure the height of a company like Binance which is barely two
years old after opening doors in 2017. He insisted that there is no real
valuation to all the work CZ and Binance do.
Citing Bitcoin, Crypto Kid says the
platform’s true potential lies behind its technology and how it meets key
milestones. Therefore he believes that an ROI over 9,000 is nothing for BNB as
its future is expected to be even brighter.
And his comment was re-affirmed.
Crypto Prophet pointed out that those people putting a maximum market cap or
prices on digital assets are just ignorant saying:
“People putting max market caps or prices on any digital asset are ignorant because of 1. Digital assets are just getting started in terms of adoption. Tip of the iceberg. 2. It’s not an equity. Company revenues have nothing to do with the valuation of a digital asset.”
Binance Innovations Justify an Increase in BNB Valuation
Binance, despite everything, is an
innovative cryptocurrency projects launching around the same time Bitcoin and
the crypto market peaked in 2017. The rise of IEO listings on its Binance
Launchpad has made the token sale venture more interesting for cryptocurrency
But it is easy to see why. Since
launch, the Launchpad has successfully raised funds for Binance for BitTorrent,
Fetch.AI and Celer. Thanks to Binance being the largest exchange by adjusted
volumes, the hard caps of each project were hit.
However—and this is bullish for
Binance Coin, the coin was used as a means of payment in all of them.
BitTorrent for example was sold out in less than 18 minutes with Changpeng
saying it would have been faster was it not for technical glitch. Presently,
the community is getting ready for the Matic token sale which will begin on April 24, 2019.
Besides, the security of Binance is
something extraordinary. Over the past few years, there have been several cases
of cryptocurrency exchange hacks. However, Binance is yet to experience such,
despite it being the largest crypto trading platform in the world, with more
trading volumes than every other one.
The high level of security
contributes to the trust investors, and traders have for the exchange. This is
one of the points raised by the Crypto Kid. So far, Binance has been open
regarding its operations and activities, and this has only increased the trust
people have for CZ and his platform.
The recent coin burn is an indication of the increasing value of BNB. In the last quarter, Binance burnt 829,888 BNB or $15.6 million. While amounts were significantly lower than the previous quarter, it is worthy to note that it is higher in terms of value since BNB’s price has tripled over the past few months.
It is clear to see that all the
above-explained reasons all contribute to what Binance is today. The
combination of these factors drives the value of BNB tokens.