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Binance Coin (BNB) Stops Following Bitcoin (BTC) — But is it Permanent?

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Binance Coin (BNB) is currently one of the most interesting coins in the vast crypto market. However, the thing that makes it interesting is seemingly unique to BNB at this time, which is the fact that it managed to decouple itself from Bitcoin (BTC).

As many are likely aware of, Bitcoin is the first and the largest cryptocurrency. It is also the most valuable one, in terms of its price. As such, Bitcoin has been dominating the market, as well as dictating the market’s behavior. Whenever Bitcoin’s price goes up or down, the rest of the market tends to follow, and each coin’s chart resembles that of BTC — not completely, but enough for everyone to notice.

Binance Coin, however, is the first coin to successfully say ‘no’ to this trend, and resist the largest cryptocurrency. Many have noticed this phenomenon and were wondering what had caused it. So far, the only explanation is a large number of use cases that BNB now has, thanks to various projects.

Binance Coin use cases

Binance Coin was created by the largest crypto exchange by trading volume, Binance. The exchange developed it to be a native coin in Binance ecosystem, and it is being used within the exchange itself. Many have started buying the coin, as using it within the exchange grants a significant discount on trading fees. The discount is set to drop by 10% yearly, starting at 50%. In other words, it will be gone after the fifth year since the coin’s launch runs up.

However, Binance found a way to keep the coin relevant through a number of other projects. The first and largest one was Binance Launchpad, which is a platform that helps new coins hold their token sales. While the ICO model is not very popular these days due to the fear of scams, buying securities, and alike — things are a bit different when the token sale is supported by a large and trusted entity such as Binance.

Further, Binance Launchpad only allows Binance users to participate in the token sale, and the new tokens can only be purchased in exchange for BNB. This has given the coin a massive new use case, and every single one of the three token sales held in 2019 (the Launchpad sells one coin per month) was met with a huge demand which had the token sales done within 15 minutes.

The demand for new, trusted coins caused BNB to surge by trading volume, price, and market cap in 2019. So much so, that BNB tripled its own price within less than two months. Not to mention that this was back when the crypto winter still had a reasonably strong influence over the market. While Bitcoin was losing value or struggling to maintain its price, at best, BNB was flourishing, and it still remains one of the best-performing coins in 2019.

In addition, Binance also recently launched Binance Jersey — a new, Europe-oriented subsidiary that offers BNB/fiat trading pairs, thus allowing people to buy cryptocurrencies in exchange for GBP and EUR.

Not only that, but Binance also announced its own blockchain, Binance Chain, as well as its own decentralized exchange, Binance DEX. While both are still in the making, Binance DEX beta was actually released recently, thus providing traders and investors with an opportunity to test it and provide their feedback. Once the chain and the DEX go live, Binance Coin will serve as their native coin as well.

Doing so will give the coin a permanent use case, and it will transform Binance from a simple, centralized exchange into a community which will be built around BNB. All of this will give BNB numerous new use cases, and the coin can only go further up from here.

Finally, Binance also holds quarterly token burns, often burning millions of BNB tokens, thus ensuring that the coin will not suffer from inflation and that its price will remain high. With all of the projects and events surrounding BNB, it is hardly surprising that it is the top performer, as well as one of the largest cryptocurrencies by market cap.

Is the separation from Bitcoin permanent?

Now, this is the real question. Bitcoin’s strength is massive, and not a single coin managed to fully decouple from it in the past. Many have tried, and even succeeded for a while, but they all came back under BTC’s fold, eventually. There were a few examples of this prior to the crypto winter, as well as during the bull run of 2017.

For now, it is difficult to tell, but if any coin will separate itself from BTC and start carving its own path — it is BNB. The coin holds tremendous potential, and it might reach a value that its own community never dared to imagine. While it is possible that BNB will eventually succumb to Bitcoin’s influence once again, for now, the coin seems to be holding its ground and resisting the allure of the largest crypto. If it manages to remain that way, the separation might be permanent, and the coin will be the first crypto ever to successfully pull it off.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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