Since their launch on 14th July 2017, Binance has grown into one of, if not the fastest ever growing company on earth. In an effort to make their coins more valuable over time, Binance schedule quarterly coin burns where 20% of the profit is used to buy back and get rid of Binance Coin, reducing the supply which in theory should increase the Binance price overall… it looks as though that may have happened today as the Binance price has surged more than 30%
Why is the Binance Coin (BNB) burn & the exchange getting so much attention?
One of the reasons it’s become so popular and has grown so quickly is the ease in which users can make an account. There’s no messing about with ID verification, providing you do not exceed a 2 Bitcoin per day withdrawal limit. If you want to withdraw more, you can fully verify your account, but for new users looking to start small, you can get started in just minutes!
Another unique feature about Binance is the fact they have their own cryptocurrency, Binance Coin. Holders of Binance Coin are entitled to a 50% reduction in fees which provides an incentive for users to buy and hold it.
Soon, Binance Coin will run on it’s own, custom built blockchain known as Binance Chain. Binance recently announced they’re beginning the development of Binance Chain.
Binance price soars 30% in a a few hours
The Binance price soared by 25% on 18th May, 2018. Exactly a month on following the Binance Coin burn back on 18th April, 2018. The Price did not initially increase following the coin burn back in April. Or not as much as investors anticipated. However, fast forward exactly a month and following almost no significant news the Binance price has surged 30% in the space of just 3 hours. While there appears to be no real idea as to what has caused this, the best guess is that the coin burn back in April has finally taken effect on the supply and demand of the token within the markets.
Throughout the April bull run which saw the entire cryptocurrency market increase, Binance remained one fo the worse performers. Binance is one of the only cryptocurrencies which value is increasing today. This price increase is at the time of writing and may still continue to increase. The Binance price had a 24hr low of $12.00 on 18th April, 2018 and at the time of writing hit a high of $16.27. A good day for investors as the rest of the cryptocurrency markets continue to devalue.
The Trading volume for BNB in this 3 hour period is also huge, with over 2.3 million BNB being traded in this time. With around 1 million BNB of this volume coming in the third hour. This could potentially have a knock in affect throughout the market once traders look to move their profits into other coins.