Despite Recent Losses, BNB Still a Solid Investment - OhNo WTF Crypto

Breaking News

Despite Recent Losses, BNB Still a Solid Investment

#crypto #bitcoin

Coinspeaker
Despite Recent Losses, BNB Still a Solid Investment
BNB is the native token of cryptocurrency exchange Binance, the largest crypto exchange by volume. Binance is also known as a major player in blockchain innovation.
According to CoinMarketCap, Binance Coin (BNB) has lost $1.5 billion in market capitalization in a week. BNB prices are down 8 percent and nearly 40 percent from last month’s high of over $39 USD.
To some, this may sound bleak and dismal for BNB. Thankfully, a pretty important backstory explains this activity. There is hope for cryptocurrency investors with any stake in BNB. In fact, it is a great time to invest in the Binance native token, particularly as the coin has been listed on other exchanges like BQT.

Why the Sudden Dip

Two major situations are in play right now. Both were virtually guaranteed to cause a drop in BNB prices, at least for a time.
First, over a year ago Binance announced that BNB would be moving off Ethereum onto its own mainnet, called Binance Chain. The Binance Chain launch took place at the end of April 2019.
All BNB was transferred from Ethereum to Binance Chain. Part of the plan to keep things stable was to burn Ethereum-based BNB tokens on a quarterly basis. This would keep the total supply of BNB at 100 million.
A burn took place July 11, 2019, after which the BNB total supply between Binance Chain and Ethereum was 189,000,000. Based on that number, there is still quite a bit of BNB left to burn in order to return to equilibrium.
However, this abrupt reduction in coin supply played significantly into today’s drop in price and market cap.
True to form, CZ, the founder and CEO, of Binance has reacted to the burn a few days ago on Twitter, comparing it to a haircut that trims off the dead, leading to healthier hair and faster growth. He is probably right.
Second, last month, Binance announced that its exchange would be leaving the United States market in September 2019, leaving many U.S. investors with limited access to altcoin investment opportunities.
The move is likely a response to increasing regulatory activity toward cryptocurrency markets in the U.S. from the SEC and other government agencies. Binance also announced plans to open a U.S.-specific exchange platform. However, the details of that, including a launch date, have not been revealed.
CZ again views the restructuring as the solution to many large issues, although it may cause temporary discomfort for many U.S. investors as well as for altcoin platforms, stating:
“Some short-term pains may be necessary for long term gains. And we always work hard to turn every short-term pain into a long-term gain.”

Why Binance Has a Bright Future

While these setbacks have caused a temporary drop in BNB value, Binance has positioned itself on the cutting edge of cryptocurrency. More than an exchange, Binance has a hand in new blockchain innovations of all sorts. These projects, even more than market conditions, are the key to increased BNB value.
The Binance Chain mainnet is constantly undergoing improvements and modifications. While many crypto projects transferred to Binance Chain from Ethereum back when it first launched, Binance Chain hoped to enable many other blockchain innovations.
In support of that, Galileo, the latest hard fork on Binance Chain, successfully took place this week.
Also, a decentralized exchange was launched alongside Binance Chain. According to CEO CZ:
“We believe decentralized exchanges bring new hope and new possibilities, offering a trustless and transparent financial system. … With no central custody of funds, Binance DEX offers far more control over your own assets.”
The upcoming launch of BinanceUS could also greatly increase the value of BNB over time. We won’t know the ramifications of losing Binance in the U.S. until it happens in September. However, when the U.S. exchange does launch, the crypto market should see significant positive change.

BNB Token Not Only Reducing Fees

Finally, the best news is saved for last. BNB is moving out of its original purpose as a utility token within the Binance exchange. The primary value of holding BNB used to come from hefty discounts when trading other tokens on Binance.
Now, BNB is listed on several other platforms, including BQT. This not only demonstrates an increased inherent value for BNB, it also supports the Binance commitment to growing the cryptocurrency and blockchain community.
New exchange BQT has also expressed a strong interest in pursuing a collaborative, mutually beneficial environment with other exchanges, investors, and the community as a whole. This BNB listing is an enormous step in that direction for both investment platforms.
Despite Recent Losses, BNB Still a Solid Investment


OhNoCrypto

via https://www.ohnocrypto.com

Maria Konash, Khareem Sudlow