A Powerful Rising of Binance Coin’s (BNB) Breaks All Forecasts

A Powerful Rising of Binance Coin's (BNB) Breaks All Forecasts

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The strong rise of the Binance exchange’s token BNB since the beginning of the year still does not get a good enough background.

Binance CEO Chanpeng Zhao (CZ) gets off with scant comments. Leading analytical agencies remain silent. There is a suspicion that the rise of BNB is of artificial nature and is developing according to the speculative Pump & Dump scheme.

At the beginning of the year, the price of BNB token was $38. In three and a half months it has risen by more than 1000% and continues to rise. It is very likely that the price of BNB will be $600 already this week. But unlike other altcoins, there are no statements or studies on BNB. Perhaps the problem is that CZ is not keen on hosting paid publications. There is also an opinion that they fear a big danger from Binance to the market, with possible market manipulation and crowding out of competitors. Therefore, analysts prefer not to notice the incredible rise of cryptocurrency, fearing that sooner or later it will drop.

The too-fast growth of a token is really suspicious and resembles a bubble. However, it is highly likely that BNB is growing as a result of the tough, well-thought-out policies of Binance’s management. It is the result of a well-thought-out effort. And the price is fair and corresponds to the value of the BNB token and the Binance Smart Chain (BSC) blockchain. On closer examination, one can see that the right steps are simply being taken to develop the cryptocurrency. It is possible that in the future the promotion strategy of BNB will be described in textbooks as a model for cryptocurrencies.

The first thing that keeps the price of BNB up is the regular burning of tokens. Tokens are burned every quarter until the amount of BNB is halved from the original issue. Some experts believe that Binance Coin has been booming since the beginning of the year because in January there was a record burning of tokens, 3.62 million BNB, worth about $166 million. The burning is recorded on the blockchain as a transaction and it is easy to verify it.

The second important factor supporting BNB is the functionality of the token on the Binance exchange and in two blockchains, Binance Smart Chain and Binance Chain. Fees are paid on the exchange with BNB tokens. But it is more important that the staking (holding) of these tokens is needed to invest in new projects that Binance is launching on its Binance Launchpad in IEO (Initial Exchange Offer) format.

Binance has a good track record of casting startups it launches. Usually, they are really useful projects with good potential, not scams. For example, the project My Neighbor Alice (ALICE), a multiplayer builder game with NFT tokens, was recently launched. The native token ALICE grew by 60,000% after listing, from $0.1 to $60, later it was corrected to $12, but this means 12,000% growth.

The third most important rising factor for BNB is the possibility to launch DeFi projects on BSC. This allows BSC to take users away from Ethereum because the commission on the BSC network is much lower than on the second cryptocurrency blockchain.

As a result, CZ’s plan to bring BNB to second place in terms of capitalization and displace ETH – no longer seems like an empty threat. At the beginning of the year, the capitalization of BNB was 13 times less than the capitalization of the largest altcoin, now it is almost 36% of the ETH cap.