BNB reached a new high in the morning, witnessing history
BNB surged close to the 800 mark in the morning, once again witnessing history, and has been continuously reaching new highs. The holders of BNB have reaped significant profits in this round, and its market value has reached 800 billion RMB! The trillion milestone is also within reach!
What is BNB?
Speaking of BNB, one cannot ignore its issuer, Binance. Binance is one of the world's well-known cryptocurrency exchanges. The exchange was established in 2017 and opened for trading in July, adopting a different strategy from traditional exchanges, focusing on 'trading between cryptocurrencies' and providing numerous trading pairs for investors to choose from. While major cryptocurrency exchanges focused on fiat and cryptocurrency inflows and outflows, making huge profits, Binance successfully created a new market with rapidly growing users. At the same time, it issued the Ethereum ERC-20 standard token BNB as the token used on its trading platform, making it a pioneer of platform tokens and bringing substantial funds to Binance, accelerating its development.
Binance Chain
In the white paper released during the ICO phase, Binance had already revealed its intention to develop an independent blockchain. In April 2019, the Binance Chain mainnet officially went live. Although this blockchain cannot support smart contracts, it has a token protocol (BEP-20) that allows for the issuance of tokens, and its transaction processing speed is much faster compared to Bitcoin, Ethereum, and other mainstream blockchains. Binance Chain can almost be said to be built specifically for Binance's decentralized exchange (Binance DEX).
The BNB originally issued on Ethereum using the ERC-20 standard has officially transitioned to Binance Chain after the mainnet launch, adopting the BEP-20 token standard, and BNB has since become the native token of Binance Chain.
However, in order to achieve fast transaction processing speed, Binance Chain has a small number of nodes that are not public, and therefore cannot be compared to the decentralization level of other public chains. Many people even criticize that the Binance DEX developed based on Binance Chain is not qualified to be called a decentralized exchange.
Functionality of the Token
Fee reduction
If BNB is used to settle transaction fees for token trading on the Binance exchange, a 50% discount can be enjoyed in the first year and 25% in the second year. On July 10, 2018, the official website announced that the rate for using BNB to offset transaction fees would be adjusted from 50% to 25%.
With such token application scenarios, one can imagine that as long as Binance's trading volume remains above a certain level and grows steadily, the demand for BNB tokens will certainly increase steadily. I believe this fee reduction will greatly increase investors' profits, especially for professional investors or high-frequency traders.
Airdrop
Airdrop news will be released from time to time, but currently, there is only one case - every user holding BNB in the top 500,000 can receive 3 BCPT airdrops.
Voting
Binance has a review system for listing coins. If a team wants to list a coin, they must purchase BNB in the market as a listing fee. Apart from the review process, there is another way, which is voting. Binance regularly holds free voting events for listing coins, and in order to participate in voting, one must hold BNB to gain a certain voting power.
Payment
In addition to the aforementioned token uses, Binance has also actively expanded the payment functionality of BNB by collaborating with various platforms and applications. Although the focus on platform tokens in payment is somewhat vague, this approach still helps to increase the usage scenarios of BNB.
Investment Potential Analysis
On the second day after CZ stated that the altcoin season is coming, BNB surged ahead, aiming for the 800 mark. This volume can be said to be unprecedented. Currently, it seems difficult to adjust in the short term, so do not chase shorts; it's best to follow the trend. Meanwhile, under the premise of repeated performances, BNB is sure to leverage this opportunity to reach a higher ceiling!