The current cryptocurrency momentum tends to raise a lot more questions than some are comfortable with. That is only to be expected, as it seems there is no consistency to note whatsoever. Now that all markets start to recover again, things will get a lot more interesting. The Binance Coin price, for example, shows how things can improve fairly quickly.
Binance Coin Starts to Pile on the Gains
There have always been high expectations when it comes to native exchange currencies. In the case of Binance Coin, the currency of the Binance exchange, things have gone according to plan, for the most part. Although its value has been quite substantial throughout 2018, it too faced a big dip in the past few weeks. Some of those losses are now being recovered in quick succession, which is pretty interesting to keep an eye on.
Over the past 24 hours, there have been some interesting developments regarding Binance Coin’s price. Its value rose by over 8% in USD value, and noted a similar gain over Bitcoin. Perhaps the more impressive development is how BNB gained over 9.5% over Ethereum as well, which further confirms things are going according to plan. This is also the first time in a while the BNB price surpasses $5.5 again.
Several key developments have taken place this week which warrant such a Binance Coin price increase. The first tidbit of news comes in the form of a partnership between Decentraland and Binance. BNB Will become one of the tokens accepted during the upcoming LAND auction, which adds another use case for Binance Coin to the list. Tokens like these, while initially designed for the Binance exchange, can serve many different purposes in the long run.
Secondly, it would appear the Binance Coin token is now accepted on the Trip.io platform. More specifically, customers can make reservations for over 450,000 hotels and lodgings around the world by using the BNB token. This makes it another very useful token first and foremost, and one that goes well beyond cashing using it to reduce fees on the Binance exchange itself. A very positive development, that much is evident.
【Breaking News】We are pleased to announce a strategic partnership with @Binance. From now on, more than 10 million users of Binance can make reservation for 450,000+ hotels worldwide using $BNB on Tripio. Thanks for the support of @cz_binance#blockchain #TRIO #Crpyto pic.twitter.com/A6kwgUsovO
— Tripio (@thetripio) December 4, 2018
There is also a lot of confusion as to what users “obtain” when they buy BNB tokens. It is a utility token to reduce trading fees on the exchange, yet some people assume this also entitles them to owning a share of Binance as a company. That is clearly not the case whatsoever, as no one but actual investors can own a stake in Binance. An interesting discussion takes place on Twitter claiming this is a “clever loophole”, although that statement doesn’t make too much sense.
No, it's not an investment in Binance. You own no part of the company by owning any number of #BNB tokens.
— Bob the buidler $buidl (@real_zao) December 4, 2018
Following these gains, it will be interesting to see what the future will hold for the Binance Coin price. This current trend is rather bullish, although it is expected most currencies will follow suit. For now, BNB maintains the $15 spot in terms of market cap, although it can be overtaken by some other projects moving forward. With these new use cases being added, however, the public’s perception of BNB may change in many different ways.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
Image(s): Shutterstock.com
