Binance Coin’s Latest Rally Reminds of Crypto Glory Days

In the so-called “crypto winter,” where it is expected that the crypto market will gain its stability and it would be able to eliminate the market speculators, there is some good news as well. The initial days of the bitcoin story are getting repeated again. The cryptocurrency of one of the hottest exchanges which are Malta-based, Binance Coin has triple its value in the last three months. Its current value now stands at $15. The inflation in the price is much talked as last year’s price collapse had made the market to see price depletion around 90 percent.

The currency’s excellent performance is the latest unexpected change in the dramatic rise of Zhao Changpeng, who co-founded the exchange during the 2017 crypto boom. It had run-ins with many country’s authorities like Japan and Hong Kong before it could decamp in the European Islands nation.

“This is the best executing team in crypto,” said Tushar Jain, managing partner at hedge fund Multicoin Capital Management in Austin, Texas. “We expect to hold them for the foreseeable future.”

Binance coin (BNB), is generally utilized by its holders to the fees to the exchange for trading. It has been quite a time that it is on the verge of being a favorite medium of exchange for issuers of initial coin offerings which would allow start-ups to raise money by listing on one of the most liquid crypto exchanges which handle about $1 billion in daily trading volume.

Binance coin is generally seen as an attractive option as the company has tied the performance of the exchange to the number of tokens in circulation. After an Initial Coin Offering of 200 million, the company aims to spend 20 percent of its profits each quarter to buy back and destroy Binance Coins. This undertaking may continue for the next ten years. As per Zhao, around half of the coins were allocated to the company’s employees and investors.

“We are in the same boat,” said Zhao. “We don’t want the price to drop, to be negatively impacted. We are very much aligned with our investors.”

The buyback has been practiced in the crypto market for quite a time. This process is usually deployed in shares and equities. But the same attempt in the crypto market is of much concern as there have been reservations amongst people whether crypto coins should be treated as securities. If it is to be treated as securities, there should be complete regulatory norms in the local jurisdiction. But regulation of cryptocurrency is something not much holders would like.

“Personally, I don’t think it’s a security,” Zhao said. “I don’t think that there’s any regulation against destroying assets you have yourself. In the worst case, we can stop the burning process.”

It should be noted that Binance is in the process of developing a public blockchain for the transfer and trading of digital assets and it is expected to be in operation in the next few months. The network is to be called, Binance Chain. It would facilitate coin traders’ access to a decentralized exchange which will handle transactions through an automated process ultimately doing away with any need for a third party to hold and trade funds.