It has been a week since Binance launched its own native blockchain. Over all, the market welcomed the launch as the price of BNB from year-to-date proves. The Binance Chain will allow startups and enterprises to launch their own tokens. This will possibly create another strong competitor for projects like Ethereum, EOS or Zilliqa.
Binance’s Advantage Over Other Tokenizing Cryptos
The advantage of launching the token on Binance‘s platform is obvious. Launching on the Binance chain will expose the tokens of any entity to the current biggest market in the space. The launch of the Binance Chain is already the second big launch for Binance this year. We have discussed earlier this month whether Binance‘s DEX (decentralized exchange) is truly decentralized.
Markets React Well to Binance’s Business Development
Binance‘s own native token, the BNB, currently an ERC20 token has already moved to the new chain. The price performed well before the launch from around $5 – $6 to well above $20. However, according to the market proverb “sell on good news” the price of BNB has plunged from more than $25 to $22.3 as of now. Binance regularly conducts coin burns. The last burn took place in March. Binance indicates that it burned: ” A total of 829,888 BNB […] , roughly equivalent to US$15,600,000.”
Binance Grew From A Startup to a Giant in Less Than Two Years
Changpeng Zhao has founded Binance only in 2017 but it is already the biggest cryptocurrency exchange in the world. It is still growing fastly as it did not make the same mistake that many other exchanges did during the bull run of 2017. Back then to many exchanges expanded too fastly. Partly, also well into the year of 2018 when the bull run – was in hindsight – already over.