Binance Coin (BNB) surged 900% in 2 years. Here is what you may have to know before you purchase the coin.
BNB ranks fourth as far as crypto market cap is concerned (Coinmarketcap data). Market players attribute the swift surges to Binance exchange growth and the Binance Smart Chain (BSC) developments.
Here are some of the things to help you understand VNB better.
Binance Faces Regulatory Trials
Binance, a renowned exchange, played a role in BNB’s popularity. However, the UK recently banned Binance affiliates. Japan also warned the crypto exchange not to operate since it is unauthorized. Meanwhile, Binance suspended its operations in Canada due to stiff crypto clampdowns.
As different nations focus on crypto regulations, other top cryptocurrency exchanges acquiring operating licenses in areas when Binance cannot run might hamper BNB’s growth. That might also reduce customer confidence in the asset.
BNB is More Than a Token
Users can utilize this token to reduce trading costs and earn interest in return. However, Binance Coin has other uses besides that. BNB also fuels BSC, a programmable blockchain running smart contracts. The best thing about these contracts is that they allow users to store their executed codes on a blockchain network. It also facilitates the building of DApps.
BNB Surged 900% in 2 Years
If you had invested $10,000 on BNB in 2019, your coins would be worth about $100,000 today. That is a significant rally that you may have to consider as an investor. Remember, BNB has competitors acting as programmable networks and crypto exchanges. But, combining Binance’s power and the token’s usage makes BNB worthy of your time.
The best thing is that BNB is straightforward than most cryptocurrencies you will find in the market.
As a BNB trader, I hope the exchange will solve its regulatory concerns soon. There is no need for multiple innovative crypto products that investors cannot access.
If you want to purchase BNB now, keep in mind that it carries crypto-trading risks. Make sure to understand everything about the project before you invest. However, if you can manage the risks, BNB has a promising future that’s worth your attention.
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