The purpose of this piece is to discuss one of the most slept on coins in the entire crypto space right now, and that’s Binance coin.
Why do we feel that this coin is slept on?
It has amazing future potential , thanks to CZ (nickname for the owner of the Binance exchange) and his ambitious plans for the expansion of Binance.
Binance’s fate is relevant because the future trajectory of Binance’s coin, is (and will remain) intertwined with the fate of the exchange itself since its functionality is tied directly into it.
Overall, this is a very good thing because, from the looks of it, Binance has been ensuring greater stability for itself with some of their recent plans.
#1 — Development of a Decentralized Exchange
Leading cryptocurrency exchange Binance has released a demo of its decentralized exchange, saying not “to expect too much” at the moment.
The link above gives the rundown on the decentralized exchange that CZ and Binance are attempting to launch by the end of this year or the beginning of the next.
Of course, this development has obvious significance for the Binance token because it will be integrated into the exchange in a functional role (not just as a traded token). Thus, if there is a large demand for Binance’s DEX (as we suspect there will be), Binance Coin will also experience increased demand.
As mentioned in some of our former pieces on Zerononcense, there are hardly any reliable / popular or well-used DEX platforms (relative to centralized exchanges) in the crypto space currently.
Thus, given Binance’s expansive resources and extensive experience in running a crypto exchange (at this point) as well as their general popularity, it stands to reason that this decentralized exchange has the potential to become the community’s flagship.
At the very least, the release of the decentralized exchange should garner significant initial interest due to Binance’s prominence in the community.
#2 — Binance is Still the ‘Top Dog’ Among English-Speaking Users
This is an indisputable fact and one that should be weighed heavily in favor of future positive price action for the Binance Coin.
According to CoinMarketCap (cited in the picture below),
Binance is currently the #1 exchange in the cryptosphere in terms of traded volume, and its been in the #1 spot or at least the top 3 for the majority of 2018.
Thus, as the space continues to expand and grow again in the future, there’s little reason to doubt that Binance will not also grow proportionally in volume or perhaps gain an even larger market share among exchanges than what it already has.
And, as we stated before, what’s good for Binance is good for Binance Coin; so, based on the assumption that the markets will expand once again and that Binance will benefit in a major way from that, we expect increased volume in the cryptosphere in the future to be a major potential benefit for Binance’s token as well.
#3 — Binance Has Received Major Funding Recently
This is a major plus for the exchange and Binance coin because it helps provide greater proof of sustainability.
This is important because it was announced by Binance that this additional funding would go toward the development of a fiat-to-crypto exchange in the country of Singapore.
To clear up some confusion about this:
When this was initially reported, certain major sources like CCN inaccurately reported that Binance had scored an investment from a firm owned by the Singapore government itself.
However, this was not the case. The firm, Vertex Ventures, whom Binance received their investment from in Singapore is a privately owned entity and is entirely unrelated to the government of Singapore. But it is worth noting that they are affiliated, in a very limited role, with an investment firm called, ‘Temasek Holdings’, and it is that firm that is owned by the Singapore government.
So, to state that the investment in Binance from Vertex is in any way related to the Singaporean government is, at best, a very, very wide stretch of the provable truth.
What Makes This Beneficial for Binance Coin?
What makes this more beneficial for Binance Coin specifically (on an investment level) is the fact that this will allow Binance to continue expanding its operations as well as their services rendered in order to attract more customers to their exchange.
More customers to their exchange and perhaps to the crypto space entirely will continue to raise the demand for Binance’s services (i.e., Binance Coin).
Again, one must consider the amount of sway and influence that Binance will hold in the future if they continue on their current path too and how them utilizing that platform to continue promoting the Binance Coin (because they aren’t going to just suddenly stop) will become increasingly more effective over time.
#4 — Binance’s Move to Malta
The move that Binance made to Malta was needed, plain and simple. The fact of the matter is that Binance is taking a major risk as an exchange, and they know it.
The risk that they’re taking is in not adhering to AML standards for all customers on their exchange. Its worth noting that it is also one of the core reasons for their success too. Without requiring any personal identification for users that wish to sign up for their exchange, many have used Binance as a ‘hub’ of sorts for their trades.
On top of this, Binance has what most crypto traders would objectively deem to be a solid assortment of traded pairs relative to the rest of the exchanges in the crypto sphere. Most major projects in the space that attract the most attention can be found on Binance and these pairs are not diluted with too many illiquid, low market cap coins either — which has made Binance a go-to.
However, as mentioned above, Binance is taking somewhat of a risk with its current structure because AML requirements have become largely universal around the globe in the 21st century.
As of now, there are very few trustworthy financial institutions on the planet (that are connected to the international financial system), that are willing to provide legitimate banking for a business like what Binance runs where individuals from all over the globe can trade digital assets with one another in excess of $1 billion without there being any accountability as to where the vast majority of the money on the exchange is coming from.
So, for Binance to be able to transition successfully to Malta and gain stable banking is a huge plus for them. It is possible that this move will provide adequate cover for Binance, for the time being. Of course, if Binance is able to create a decentralized exchange that truly is decentralized in the future, then this will no longer be an issue because software that truly operates in a decentralized manner cannot be ‘shut down’ unless each and every single node is eliminated.
#5 — There is an Actual Use for Binance’s Token
This sounds like a no-brainer but, sadly, in the world of cryptocurrency, it truly isn’t.
With that in mind, it bears reminding that the Binance Coin does have a legitimate purpose.
Now, is that purpose contrived from an artificial lack of substitutes? Absolutely.
There is no special function or inherently unique property of Binance Coin that allows it to perform a task that no other coin could perform. There are hundreds, if not thousands of other cryptocurrencies that would be able to sufficiently perform the same role as Binance Coin.
Does that make Binance Coin worthless?
Since Binance is in a position to give it worth, the coin’s intended purpose (according to Binance) is to allow users to save on fees on the exchange.
After reading that, you might be tempted to think to yourself,
‘Wow, that sounds pretty insignificant. I’m not convinced.’
But we must do the simple math here: Binance is the #1 exchange in crypto right now in terms of traded volume (and from the looks of it they are head and shoulders above the rest). And people like saving money. After all, most people trade on an exchange to make it.
Therefore, there is and will continue to be a demand for the Binance Coin as long as there is a demand for Binance.
After all, it would be counter-intuitive to not take advantage of that.
Thus, there is a solid use case for Binance’s token.
Now, you may be thinking at this point, ‘Wow, that sounds kind of manufactured.’
Hell yeah it is.
But that’s simply the nature of business. Don’t believe us? Let us demonstrate.
Are you familiar with the iPhone?
In case you’ve been sleeping under a rock, an iPhone is the smart phone that pretty much everyone owns these days.
You ever seen one of those phone chargers that come with the iPhone? Apple does everything in its power to force you to use those flimsy little cords attached to the white square box.
They’ve even gone as far as modifying their software to detect any ‘off-brand’ chargers and prevent them from charging their phones just to ensure that customers of their super popular iPhones would be forced to buy their chargers as well.
And it works. Well.
Could Apple build a phone with a more universal / commonly used charging port and allow any and all manufacturers’ of that specific cable output’s product to function correctly with the iPhone? Sure. Easily. In fact, it would probably be easier to do that than to program the software to reject any and all alternatives and it would certainly be more convenient for the end user.
But will Apple do that?
Because, at the very least, they know people will buy their chargers much less frequently if they remain at the current value they’re priced at.
So, if you were feeling antsy about the value of Binance Coin being manufactured, just remind yourself that a lot of other major businesses do the exact same thing on every level imaginable.
In conclusion, we expect that the value of the Binance Coin will increase in the future because…why not? All evidence and observation so far appears to lead to that conclusion.
Barring a black swan event of some sort, it seems hard to imagine that the Binance Coin will not one day be more valuable than it is now.