Thanks steemit team for the opportunity to write again in the steemit crypto academy after the break. I’m writing in response to the task given by professor @yohan2on to write about altcoin .
Introduction
At the end of five months of 2018, bitcoin has fallen in price by half, and one and a half thousand other cryptocurrencies sank even deeper. Only five altcoins have shown growth during this period. And the title of the fastest growing of them is held by the Binance Coin token. In January-May, the value of BNB increased by 66% - from $ 8.4 to $ 13.9 per share, and its capitalization increased by 88% - from $ 850 million to $ 1.6 billion.
Binance Coin BNB
Although Binance Coin BNB is the token of the crypto exchange of the same name, it can be used like bitcoin or any altcoin to exchange for any other assets. It is a token that originally used the Ethereum blockchain, but BNB later moved to Binance Chain. On its platform, BNB performs three main functions: it is considered a trading asset, used to reduce the commission; ideal for paying for goods listed on platforms that accept Binance Coin BNB. The last feature has a time limit: Binance Coin can only be used to reduce fees for the first four years after the launch of the cryptocurrency,
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The rise of Binance Coin is surprising that this altcoin, which appeared in 2017 has neither a unique blockchain nor a lofty goal to change the world. Binance Coin is a token of the ERC20 standard, of which over 500 have been created on the Ethereum platform. And its purpose is just to pay for internal transactions on the Binance cryptocurrency exchange.
So, for BNB tokens on the Binance exchange, you can buy more than a hundred other cryptocurrencies. The presence of these altcoins with traders also allows them to save.
Binance Coin's goal - to fuel the exchange - looks low-profile and small-scale compared to any other token in the top 20. The contrast is especially striking when compared with the altcoins of the ambitious project EOS , which develops the "operating system of the Earth", or with the cryptocoins IOTA , created to pay off hundreds of billions of machines in the ecosystem of the "Internet of Things" with them.
However, Binance Coin tokens have three powerful engines that push the price upward.
1 Behind them is the authoritative creator Changpeng Zhao, who in just six months turned from a millionaire to a billionaire and received the title of the king of crypto trading from the media for this.
2 Its internal token is pulled upward by the working business - the Binance exchange , which within eight months gone from an idea to the world's largest cryptocurrency exchange platform.
3 The excitement around BNB is also fueled by an aggressive marketing policy with shocking slogans for many: “we will take away privileges from token holders”, and “we will buy and burn tokens”.
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Pros and cons of BNB
High liquidity: Binance Coin is traded in pairs with over 400 coins, making it one of the most liquid.
Planned decrease in coin turnover: The Binance team protects the coin from inflation and does everything they can to keep prices up in the long term.
Reduced commission: Those with Binance Coin in their wallets can open and close trades on the exchange with lower fees.
Reputation: Binance and its founder, Changpeng Zhao, have a solid reputation. Now it is one of the key conditions for the success and longevity of any crypto project.
Versatility: Most exchanges accept BNB
Are there any downsides?
A large concentration of Binance Coin BNB in the hands of its founders (at least 40% of the total supply). This is the potential for manipulating the price of Binance Coin for a company.
BNB perspectives
Binance Coin BNB is currently in the TOP 10 cryptocurrencies. The BNB cryptocurrency is one of the most interesting and unique coins out there, and many leading crypto experts believe it has a great future. Now it is quite difficult to predict the further development of any crypto projects and the change in the price of tokens in the long term. But any forecast should be based on three factors: the current state of the project, performance in previous years, and the use of tokens outside of a specific exchange. BNB coin is completely dependent on the popularity of the Binance exchange. The project is blessed with loyal and active community spanning several countries, it has proven itself to be reliable, and buying BNB can be a good investment.