Binance Coin (BNB) is proving to be one of the best, if not the best, performing cryptocurrencies throughout 2019. It appears that the cryptocurrency is also gaining more and more steam with each past Initial Exchange Offering (IEO) held on the Binance Launchpad platform.
IEOs Catalyzing Notable Price Gains for BNB
All of this was thoroughly exemplified on a chart, highlighting the exact periods of the IEOs, as well as the way the price behaved following each one of them.
— DR.❄️ (@Dr_Yilmaz_PhD) June 2, 2019
As it can be clearly seen, each IEO acted as an obvious catalyst for the price of BNB. This doesn’t come much to a surprise to anyone who knows how the Binance Launchpad platform works.
First, IEOs trigger an enormous interest because the coins which are launched through them begin trading on Binance almost immediately. So far, every single token launched through an IEO on Binance Launchpad has seen its price skyrocket immediately after it was put for trading on the exchange. Naturally, people want to get in on the action.
The catch, however, is that in order to participate, you have to buy BNB. At first, everyone could take part, irrespective of how much BNB they were holding. The massive interest, though, saw the platform unable to handle all the buying requests, as each event was sold out in just a few seconds. This triggered the community as many people were unhappy and even raising fears that it was all just a setup.
To cast those doubts away, Binance took a u-turn and made the format for participation much like a lottery. Now, people have to hold BNB for a certain predetermined amount of time to be eligible to receive tickets which guarantee them an amount of the tokens subjected to the IEO.
In other words, people no longer need to buy BNB, but they also need to hold it over a specified period. This was a particularly smart move by Binance, and the price action reflects it brilliantly.
Even after the news that Binance got hacked for around $40 million worth of Bitcoin didn’t slow down BNB. Despite experiencing a slight decline, the cryptocurrency quickly got back on its feet to surge right back.
From Good to Better for BNB
Things are only looking food for BNB in the long term, should this trend continue. As we’ve seen in the past, the entire Binance team headed by their proactive CEO Changpeng Zhao, are continually striving to bring new use cases for their native token while also bringing the whole industry up in the process.
Just recently, Cryptopotato reported that Binance is in the Beta stage of enabling margin trading for selected cryptocurrency pairs.
Moreover, the launch of the decentralized exchange (DEX), Binance Chain, and the subsequent migration of various projects on it brought yet another use case for BNB.
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Source: Crypto Potato