In February 2019, Binance Coin was able to enter the top ten largest cryptocurrencies in terms of capitalization. It cannot be said that its appearance was not accompanied by serious issues; however, the new token managed to successfully compete with Bitcoin SV, Stellar and Monero.
In just 5 months after the starting, Binance exchange entered the top three largest platforms in terms of turnover. Some experts attribute this to the company’s aggressive marketing policy; however, only loud advertising would not be enough. The combination of the following factors played a meaningful role:
There were times when Binance refused to accept new customers in 2018. This created an artificial stir and showed that the quality of services remains the primary factor.
It was possible to earn the most money on Binance Coin tokens, which were initially sold at $ 0.1, and then increased to $ 32. This allowed the coin to increase by the 7th place in the cryptocurrency rating in terms of capitalization. Some analysts began to say that this asset would be able to replace Bitcoin as the most valuable cryptocurrency.
However, the likelihood of such a development is precious little. The issue is that Bitcoin is essentially a blockchain without a single control center. Despite the deficiencies, they cannot be manipulated.
On the contrary, Binance exchange tokens have a single control center, which deprives them of the independence. Although it is somewhat easier to cash out the BNB cryptocurrency, there are always manipulation risks on behalf of the exchange. However, this does not prevent the asset from finding its admirers.
If the platform has financial difficulties, then its token will inevitably go down. However, so far this asset has quite serious prospects. It is the close relationship of the exchange and the coin which covers the secret of BNB price rapid growth.
It was proven to be very convenient to use. Thus, due to the cooperation with Simplex Processing Center from Israel, it is possible to buy Binance Coin by means of Visa or MasterCard. However, in this case, the user will not be able to maintain anonymity; he will have to go through the procedure of registering KYC code.
Undoubtedly, the exchange main customers are still China residents. There is a strict policy for cryptocurrency companies. The local entrepreneurs are forced to register in other countries, but at the same time offer services to China residents. There is no saying how long this practice will last. Both with legalization and prohibition of cryptocurrency, the exchange will be in a difficult situation.
The secret of its rapid growth lies in the combination of security and anonymity. If the business ban is removed, transactions anonymity will lose its appeal. In case of a total ban, there are risks to the whole Binance business. That is, despite the rapid development, platform’s future largely depends on the authorities actions.