CoinMarketCap named Binance Coin (BNB) its ninth-most valuable cryptocurrency on 1 March 2020.
In detail, CoinMarketCap gave Binance Coin a $3.227 billion Market Capitalization, a 24-Hour Market Volume of $424.240 million and Coin Price of $20.75 on 5 March 2020. I think Binance Coin’s value is odd because Binance Coin is a utility token put out by a cryptocurrency exchange.
To explain the organization behind Binance Coin; Binance, calls itself the world’s largest cryptcourrency exchange. Additionally, Binance offers a package of technological solutions and resources for cryptocurrency and blockchain.
What Value does Binance Have?
For instance, Binance Academy offers education and information about the blockchain.
In addition, there’s Binance Launchpad a cryptocurrency promotion solution designed to counter Ethereum (ETH) and EOS (EOS). Logically, they built Binance Coin (BNB) with Binance Launchpad. Cryptocurrency and blockchain solutions pushed through Binance Launchpad include Band Protocol (BAND), WazirX, TROY, KAVA, Harmony, BiTorrent, bread, and GIFTO.
The Binance Cloud is a blockchain cloud solution that supports cryptocurrency exchanges. Binance claims Binance Cloud offers exchanges greater liquidity, security, performance, and independence. Interestingly, Binance claims Binance Cloud could power Spot Trading, Fiat Trading, and a management system for exchanges.
Binance Labs, is a venture capital platform and incubator that allows you to invest in blockchain and cryptocurrency research and development projects. Binance Labs offers both direct investment in working products and an incubation program.
The Potential Value of Binance
Importantly, Binance is trying to solve several cryptocurrency’s limitations and problems.
For instance, Binance seeks solutions for Double E-Spending. Double E-Spending means you could theoretically spend one altcoin twice. For example, you could use one Bitcoin (BTC) to pay two people at once. Consequently, one person gets paid.
Lossless Lotteries at Binance
In addition, Binance is trying to solve the blockchain scalability problem with sidechains and payment channels. In particular, Binance’s developers want to create scalability solutions for lossless lotteries.
In a lossless lottery, smart contracts will function as mini-annuities that guarantee payment. Theoretically, they could use a lossless lottery to give everybody access to the bond market.
A smart contract is a digital robot built they build in the blockchain. Smart contracts automatically perform specific actions. For example, a lossless lottery smart contract always pays prize recipients.
Is Binance Coin (BNB) a Good Cryptocurrency?
Frankly, I have a hard time seeing what the purpose of cryptocurrencies such as Binance Coin (BNB) is. To explain, I think Binance Coin is a next-generation blockchain fundraising method for blockchain projects.
Mr. Market; however, disagrees. Notably, Binance gave Binance Coin (BNB) a Coin Price of $20.61, a 24-Hour Market Volume of $64.695 million and a 24-Hour High of $21.46 on 1 March 2020.
In addition, CoinMarketCap data indicates there was a Circulating Supply of 155.537 million BNB, a Total Supply of 187.537 million BNB, and a Maximum Supply of 187.537 million BNB on 1 March 2020. Thus, there is a demand for Binance.
Personally, I think there is little personal value to Binance (BNB). However, CoinMarketCap’s data shows Mr. Market and many speculators disagree. Thus, I consider Binance Coin (BNB) an interesting speculative investment.
Personally, I think Binance (BNB) has little practical value. However, CoinMarketCap’s data shows Mr. Market and many speculators disagree. Thus, I consider Binance Coin (BNB) an interesting speculative investment.