By Why Binance coin is still your best bet
Coin Ticker
BNB (BNB-USD)
Coin Name and Trading Exchange Platform
Binance coin (BNB) – Binance
– eToro
– Other major exchange
Sector
BNB is the native exchange token of the Binance crypto Exchange. It was launched in 2017 with the main purpose of allowing finance users to benefit from a reduced cost of transaction fees.
The coin has since evolved to numerous uses including buying goods via the Binance pay platform, booking flights, offering staking rewards, and more.
It is the primary currency for both the Binance chain and Binance smart chain.
Binance was founded by Changpeng Zhao, popularly known as CZ in 2017 and held its ICO raising $15M in the process.
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It is the largest crypto exchange by volume from 2018 to date, just ahead of FTX and Coinbase.
It rebranded in February this year to Build and Build (BNB) from Binance Coin together with its other chains.
Recent Most Important News about BNB
Binance has come under fire from regulators who have spewed allegations of money laundry and tax evasion.
Binance is working to clear its name and has assured it will come out victorious. CEO CZ has stated that regulation is shaping up well for the industry.
The market moves have impacted the price. CZ has recently said the relationship between the equities and crypto markets should be inversely correlated but panic has driven the masses to withdraw from all speculative assets and prefer holding cash.
Crypto is showing recovering signs from the huge fall and significant gains have been recorded recently. Investors are starting to take advantage of the cheap prices to make an entry.
BNB has introduced a coin vault for its users. This will offer its users and holders of BNB benefits like mining and better earnings options.
Experts from Finders release their forecasts for BNB and have asserted that it has a ‘fairly bright future.
Binance launched an affiliate marketing program in the US after coinbase shut down its division. There are looking to capitalize on the market gap.
Current Position of BNB
BNB exists in the Binance blockchain, it was formerly made up of two layers namely the Binance Beacon chain (governance) and BNB Smart chain(execution).
Rebranding earlier this year saw the two merges into one to create one single Binance chain.
This was in a bid to better its ecosystem and make it grow beyond the Binance exchange. Binance is still the primary entity behind the chain.
This is contrary to most crypto were initially built by a single software company but are legally owned by a non-profit which coordinates development.
This move has so far been able to shield crypto projects from unreasonable regulation.
One might argue that this is the reason that Binance faces a myriad of lawsuits. It has met many allegations in numerous countries around the world including Uk, the US, Germany, etc.
BNB operates using a Proof-of-stake mechanism with limited smart contracts functionality that can process up to 10K transactions per second.
The chain has 40 validators which are smaller than the mean 120 validators that most cosmos chains have. It is therefore much faster but also very centralized.
The concern of centralization around its chain has arisen but none of the validators on its chain is run by BNB but by independent third parties including established crypto companies.
The BNB chain has ambitious goals to develop ‘MetaFi,’ which is a protocol that allows for the development of a wide variety of blockchain functionalities.
These will be able to exist in one ecosystem due to BNB’s multi0chain capabilities.
The purpose of the BNB smart chain is to make decentralized applications. It uses a separate smart contract compatible chain and the Ethereum virtual machine to process them.
BNB shines in terms of scalability and Security and is undisputedly one of the fastest chains in the globe, with a capacity to complete 1.4M TPS.
It has been able to prevent attacks on its main chain despite many hacking attempts.
Now looking at its tokenomics, BNB exists as an ERC-20 token on Ethereum and a BEP-20 token on the BNB smart chain.
It had an initial supply of 200M, 50% of this was sold at its ICO, 40% went to the Binance team, and 10% to venture capitalists.
BNB has also been aggressive in burning and has set up a quarterly burn protocol.
So far, 3.8M have been auto burned, and just over 34M BNB were burned in their quarterly burn. The total burn equates to about 38 million.
BNB has had success and propelled its founder CZ to become the richest figure in crypto, attaining a staggering $97B at peak of the crypto bull markets.
This has retraced with a fall in the markets but is still up in the billions. The Luna fiasco in particular hit BNB hard.
The tokenomics of the token are quite sound and supply is kept as scarce as possible. This makes BNB deflationary which is excellent for its holders.
The BNB ecosystem comprises dozens of apps that have applicable uses in the real world.
BNB Price Chart
BNB price chart
BNB is trading at $278 as of the 20th of June 2022. It has seen worse days as the bears took control and are at their lowest last month.
It has started a rallying momentum in the past but is still a far cry from its heydays in 2021 when it was trading north of $700.
At this point, it is up by +44.27% in the past day. It rose by 10.71% in the past week and +33% in the past month.
It is down by 22% in the past 6 months which has been intense with many coins losing their entire value.
It has been astoundingly resistant and is up by +0.70 in the past year, even with the massive downtrend.
Sentiment on BNB
BNB is believed by many value investors, especially those who made an early entry, to bag a return to the tune of +4000% on invested capital.
The positive price action is accredited to the burns and buybacks that BNB has done. Additionally, the BNB team’s willingness to hoard has helped a lot in sustaining the price.
BNB became the third largest crypto by market cap in early 2021 and attracted a lot of attention from both traders and lawmakers.
It has been attacked from all sides and the UK financial watchdog halted its ‘regulated activity in the country. Big banks have also cut-off support fearing withdrawals.
CEO CZ is a much respected and inspirational figure throughout the world.
He is known as the ‘humble billionaire’ but recently showed his tougher side by suing Bloomberg Hong Kong for calling Binance a ‘Ponzi scheme.’
It embraced as a leader in the space that could change the world as we know it.
Pros of BNB based on Investors Outlook
- Fairly priced – It is trading at a nominal price compared to BTC and ETH. It has much potential to grow and rise to the top of the industry.
- Competent team – BNB is backed by the largest exchange in crypto thus investors are confident in its operations.
- Resilient – BNB has shown its resilience and resistance to bear markets, and this shows it can withstand bearish markets.
- Superior Chain – The BNB chain is fast, supports multi-chain, and is EVM compatible. This makes it incredible for developers and thus draws many of them to its community.
Cons of BNB based on Investors Outlook
- BNB exchange ties – Unlike other tokens which operate using a no-profit, BNB relies heavily on the Binance exchange thus regulators and is thus vulnerable to regulatory pressures. It has been surcharged by governments throughout the world.
- Crypto sell-off – Uncertainty reigns in the market with recessionary talks ongoing. BNB is not immune to such mass hysteria which saw more than $2T of market cap wiped away in the entire crypto market.
Pros for Investing in BNB based on the General Outlook
- Utility – It is one of the best utility tokens in the industry and has a broad portfolio of projects it is undertaking.
- High Burn rate – BNB has been burned massively and they have a unique policy to ensure that the supply remains scarce.
- Speed and efficacy – BNB use POS consensus and is on the fastest chains and is equally cheap.
- Popularity – The coin is extremely popular given it is backed by the world’s largest crypto exchange. It has a sizable number of users.
Cons for Investing in BNB based on the General Outlook
- Increasing regulations – BNB was recently fined by the Dutch government. Many lawmakers are against crypto, and BNB and others will be up for an uphill battle.
- Limited Smart contracts – It has no contracts supported by the chain. This means that the anonymity and originality of transactions are compromised.
Growth Likelihood and Potential for BNB
BNB has a lot of uses and is very appealing in foresight and it has many advantages on its side. It must overcome its core problems of centralization and regulations.
It has celebrated its fifth anniversary in Paris and the community is focused on evolving and leading the frontiers of the crypto world.
CZ also pointed out that many players in the space have not handled cash well leading to their peril.
BNB is bent on making sure the infrastructure is optimal and that there is no failure.
Their fundamentals are strong, and they can handle the challenges that they face. The SEC probe into BNB could spell disaster for the entire crypto industry.
Authorities have already acted against Ripple (XRP) and are now looking in the direction of BNB. The SEC claims that it I trading as an unregistered security.
BNB has the support of the masses and they have refused to comment on the ongoing rift with regulators that is in court.
It is also influenced little by VCs which guarantees it much flexibility. It has a substantial number of institutions that are backing it and mega crypto investors like Mark Cuban, Michael Saylor, and many more.
Most of the BNB trading volume is taking place in many exchanges throughout the world and even if it gets de-listed in the US, it still has a large market in other friendly countries.
Money talks and in the face of increasing political risk, a change in geographies could be the key to achieving success, where the environment favors support of a free market.
Experts foreshadow that it is an easy double in a matter of months. Naysayers still exist but agree it has been a good growth play by far.
Overall Verdict on BNB
The Finder’s panel gave an overall bullish outlook on the direction of the BNB. The long-term price target is estimated to be upwards of $1200.
BNB’s technical factors are looking up with the recent surge. Moving averages indicate a buy while oscillators are neutral. It is an overall buy and has an upward trajectory.
The MD of Digital capital management, Ben Ritchie says:
Since the BNB chain ecosystem continues to grow, the price may reach as high as $3000 in 2030.
He further stated that:
BNB chains also plan to support a layer 2 chain within the network which can be helpful in the future as they suffer the same gas fees issues as Ethereum.
A consensus of an overall 600% increase is expected in the coming years. BNB is still the best bet in the crypto industry due to the enormous size and a lot of progress that see it continue to rise even in rigorous times.
It is one of the most exciting cryptocurrencies that one can get and is very strategic to ensure it upholds value. It has been less affected compared to many other coins even BTC and ETH.
It can achieve a stalemate with regulators, but the support of its users is the key to pushing for a revolution in the capital markets which is chaotic now.
BNB is a good consideration in one’s portfolio and one should watch the market before making an entry. Timing the market is risky and a long-haul view is more rewarding.
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