Binance Coin (BNB), the native token of one of the largest cryptocurrency exchanges in the world, has increased its value three times over the past three months, which probably makes it the best cryptocurrency quarter. This led some experts to suggest that Binance Coin could follow in the footsteps of Bitcoin, which rose to more than $ 20,000 by the end of 2017.
The BNB coin is widely used by Binance users to pay trade exchanges. It has also become a popular medium of exchange for PPI issuers, since the coin allows startups to collect money by transferring to Binance; The exchange is one of the most liquid trading platforms and handles about $ 1 billion in trading volume every day.
Tushar Jain, managing partner of the hedge fund Multicoin Capital Management in Austin, said that Binance was “the best team of performers in cryptocurrency.”
“We expect to keep them for the foreseeable future,” - said Jain.
According to Bloomberg, the company's practice of tying stock exchange performance to the number of tokens in circulation made Binance Coin attractive to investors. After the company's 2017 ICO, where 200 million BNB coins were issued, about 50 percent of them were allocated to company employees and investors.
With the company's plans to spend 20 percent of its profits each year to buy out and destroy Binance Coin, steady growth in demand is expected. The mechanism also allows Binance to model equity in a company without the same restrictions on share issuance.
Changpen Jao, co-founder of the exchange, said that Binance was in the same boat as his clients.
“We do not want the price to fall, it will have a negative impact. We are very attached to our investors, ”he told Bloomberg.
But, although stock repurchase is a common thing among publicly traded companies, it has raised concerns about whether BNB coins are actually securities. Zhao noted that he does not believe that coins should be classified as securities.
However, many members of the crypto community remain concerned that the coins fall under the jurisdiction of local regulators, as this will make them subject to both federal authorities and government securities departments, impeding trade and the availability of cryptocurrency.
