Why Binance Coin is going to continue to rise?
Binance is a decentralized cryptocurrency exchange built using Blockchain technology. A strong team with superior technology made the exchange live this year. Within 3 months after launch, they have $7.5 million in profit. Not only this, every day Binance’s exchange processes about US$500 million in trade, taking a 0.1 percent fee.
You might be wondering what is so unique about this. This is where the Binance Coin (BNB) comes into picture. A creatively thought out revenue model includes their own token at the heart of this exchange. The exchange does not allow trade with fiat currency and is a cryptocurrency only market. The Binance ICO was pretty successful in July this year offering strict limit of 200MM BNB that will ever be created. BNB will run natively on the Ethereum blockchain with ERC 20.
The Binance Coin is integrated into the trading model which users to get heavy discount on the commissions when they pay using the token i.e. 0.005 percent if users pay commission in Binance Coin (BNB). This is really interesting as with the diverse set of coins available for trade and faster verification process removes the friction for new users entering into the world of cryptocurrency. In addition, converting its model to cryptocurrency only exchange allows it safety against the regulations. Moreover, since the coin value should be following a direct correlation with the exchange’s revenue and profit which is bound to increase at a considerable rate owing to the fact that the interest and adoption in cryptocurrencies is just beginning to explode.
We did analyze the chart for Binance Coin and it has seen steady increase from $1.93 to a high of $2.90 in the last 7 days:
We expect the uptrend to continue and the coin might continue to make new highs with high subscriber growth and trading volume continuing on the exchange.