The mainstream media pays attention to the cryptocurrency market only when it’s booming or when it’s sinking. It’s a significant factor in bringing new investors in. As Bitcoin is dancing around the USD 8.000,00 level, otherwise dormant investors are waking up and getting excited. As those traders have a fresh look into their portfolios, they’ll soon find they need to decide when is the right time to invest in altcoins, not to mention choosing the right coin or coins.
Altcoins can be much riskier than Bitcoin, mother and father of all cryptocurrencies, which is already not the safest bet in the world unless, perhaps, you’re playing for the very long term. But more risk is not necessarily a bad thing. The most basic rule in the investing game is that higher risks pay higher returns.
One of the altcoins that seem to be doing everything right is Binance Coin (BNB) which is the Binance cryptocurrency exchange platform’s native currency.
While news of a Binance hack affected the currency’s price negatively for a while, it bounced back and recovered. Other than the hack, Binance has been reporting a steady stream of good news, and that’s helped market performance for the token. Among that good news, perhaps the CoinFlip partnership, announced the last March, is the one that’s helped the most.
BNB Recent Performance
During 2018 the BNB token was the only one that was rising in value (or at least keeping it) while the rest of the market was plummeting. In April, it was the first currency to take advantage of Bitcoin’s surge, and it’s kept going up. So why is BNB rising? We can think of several reasons:
- BNB holders get significant discounts when trading at Binance.
- Coin burns. When a project burns some coins, the total number of tokens in circulation diminishes, thus creating a deflationary pressure that can often lead to an increase in value for the remaining tokens. And Binance will be burning BNB tokens at the rate equivalent of 20% its quarterly earnings until only 100 million coins remain.
- IEOs or Initial Exchange Offerings are launches of new cryptocurrencies or any other project that needs fundraising. Crypto exchanges manage them, and Binance was the first one to offer that service. Participating in such an event requires BNB tokens, and the initial raising of new funds is done in BNB as well (at least partially). That creates demand and trade volume for the currency.
The PR arena is also essential and Chagpeng Zhao, Binance’s CEO, has turned into something of a crypto celebrity. Also, he’s very competent, as shown by his decision to partner up with CoinFlip.
The CoinFlip Partnership
CoinFlip has more than 200 ATM distributed all over the US. They’re the premier crypto-ATM service provider in the country. The company aims to give its consumers the best possible fiat-to-crypto gateway. The machines are easy to use, intuitive, and state-of-the-art, and allow users to buy and sell cryptocurrencies.
So how is it that CoinFlip’s ATMs generate additional demand for BNB, I hear you ask? It facilitates access to the coin to a lot more people for a start. Users who are not so geeky or crypto-inclined can buy digital cash using the ATMs instead of learning the crypto ropes.
ATMs are a lot more familiar to lots of people, after all. Privacy is another reason. Many exchanges ask of users to go through know-your-costumer procedures or other awkward identity verifications procedures. It’s tedious for some users, and a threat for privacy for others and they both can avoid it by just using the ATMs.
The procedures for deposits and withdrawals under USD 900,00 are safe and straightforward.
It’s not only how well the BNB token has performed during the last few months. The future of crypto is in mainstream adoption, and CoinFlip’s ATMs have the potential to facilitate that process considerably. And now, BNB is in that mix thanks to its partnership.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.