Binance(dot)US will launch Binance Coin (BNB) pairs from the first days of trading, based on its definition as a utility coin. BNB is attractive for being one of the top gainers in 2019.
BNB Considered a Utility Token
Binance’s native asset, BNB, was among the coins planned for the upcoming Binance(dot)US exchange. But now, it turns out the asset will be one of the first to be traded in multiple pairs. BNB was defined as a “utility token” by Binance’s CEO, Changpeng Zhao.
Utility token $BNB. https://t.co/Dp3WuFq4Ou
— CZ Binance (@cz_binance) September 18, 2019
CZ’s comment gave legitimacy to the tweet outlining the BNB pairs, as commenters initially suspected a fabrication.
The status of a utility token is highly important for US traders. The US Securities and Exchange Commission is extremely vigilant about coins that could be considered securities. In the case of Binance Coin, the opinion of the exchange may not really matter.
BNB has some of the features that have made the SEC skeptical about tokens in the past. The asset was used to raise funds for the Binance ICO in 2017 and pays out a form of dividend based on trading fees and quarterly token burns. But for now, Binance(dot)US seems decided on opening several pairs for BNB. Thus, the potential listing comes as a surprise, especially given previous skeptical opinions that Binance(dot)US would launch without the native token.
Good Historical Performance and Returns
BNB, however, would have limited capabilities on the exchange. For now, US traders will not be able to participate in the regular token sales, which require having balances in the native token. The coins are then used to buy lottery tickets, to win the right of participating in the token sale.
BNB is trading at ~$23, after a rapid climb in the past day. The coin topped $39 during the summer months, becoming one of the few altcoins to gain more than Bitcoin (BTC). Based on the business of Binance, it is also one of the most successful ICO tokens, offering wild gains from its initial ICO price of $0.50.
The coin is also involved in the recently launched Binance Lending program. It offers up to 10% annualized interest rate, requiring a 14-day period of locking the coins.
What do you think of BNB trading? Share your thoughts in the comments section below!
Let’s block ads! (Why?)