Why It's Important For Us To Know More About BNB
Cub Defi has brought us all into the world of binance. That in itself if enough to make me wonder what the future of this token may be. Especially since many of the farms are pooling against binance it is important to understand the future of this token.
I've been hodling BNB for some time now and primarily pooling it against BLEO and CUB since I have the most faith in the future of the Leofinance ecosystem. I've discussed my faith in the Leo team in past articles, and today I want to look more closely a token that appears to be a long term partner for our community.
Reason why Binance is undervalued
Based on the total value of all the tokens that were sold with this ICO at the time of writing this article is 26,515,067,371 RMB (~5.8 Billion USD) roughly one fifth of the total ICO market cap.
Binance went public (open for trading) and on the 1st of November of this year it was reported that some investors sold their BNB shares because they would not want to wait until the 16th of November to be able to cash out. The ICO is considered the largest ever.
Based on the total market cap of all the coins that were raised this ICO has raised 7 billion RMB. This is because, BNB is, by far, the most liquid tokens in the binance ecosystem. This is because, unlike BTC and ETH there is no IPO process for these coins.
BNB is used to pay trading fees
Of that transaction they make a fee of 7% (just like most banks and exchanges do.) BNB has the unique advantage to be the first ICO coin with no premine.
There is a big reason behind this. Most of the successful ICO's of the past few years have premined their tokens in large percentages. This has put a level of trust in the devs/team. Because we know there is an actual token for sale which everyone can see this has instilled trust in the community.
The same thing happened with the Steem coin. Steem bought into Steem early and had to deal with the large amounts of premine. With BNB you have no premine, and Binance has kept the source of their funds a secret thus greatly instilling the trust of the community. How Does BNB Compare To Altcoins?
BNB is used to vote for coins
BNB is the only large altcoin with an built-in voting system. Every six hours one half of the BNB tokens are sent to the "BNB Fair," which is the governance system of the coin.
The blocks of coins voting for different aspects of the coin are meant to represent the vote of BNB holders. BNB holders can elect a block of 50 coins for the next six hours to represent their opinions. Over time, BNB can become more valuable through this system.
In the last six months, the value of BNB has increased by 150% and some projects using the BNB Fair have garnered millions of dollars in funding. The BNB Fair provides support for developers This gives BNB the unique ability to produce a layer of autonomy on top of an already fully developed ecosystem.
BNB outside the Binance ecosystem
It's essential to understand where the economic potential of BNB as a utility token lies. Unlike security tokens, utility tokens don't represent the company or organization’s value that issued them.
Third parties who transact in and accept BNB impact the token’s value for its users.
(Image and Information below was pulled directly from the Binance Website)
Accommodation & Travel
With Travala.com, you can buy flights, pay for your hotel, and even rent a car with BNB. There's nothing better than enjoying your crypto gains with a lovely holiday paid for with Binance Coin.
Shopping
Hundreds of online vendors and merchants accept BNB as payment for goods or services. You can use them directly from your wallet, Binance account, or Binance Card.
Gaming
Many gaming sites allow you to use BNB to pay for lottery tickets, participate in sports-related games, or treat BNB as game tokens for live roulette or slot machines.
Real Estate
With BNB, you can buy just about everything, including physical real estate. Did you always want to buy your dream house with crypto? Now you can, using BNB.
Conclusion
Binance Coin (BNB) will likely still find its place as an asset class that people find a use for. It is important to recognize that most of the people purchasing BNB today likely also invest in other Crypto asset classes. BNB is priced as a fractional percentage of Bitcon, which is perhaps why we are seeing the mainstream of the crypto-market pouring into this digital coin.
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Thank You To This Community!
I provide these insights as a way to give back and help others who find themselves on the same journey I was when I got started. I want to say thank you to the Leofinance community for giving me the opportunity to learn more about Crypto as well as to the creators and team for providing many great avenues for investors to grow their wealth and knowledge in one easy place.
Cheers to your success!