Binance Coin (BNB) Price Moon after Leaving Ethereum
Shortly after announcing the launch of its mainnet yesterday, as well as the details for the BNB swap, Binance revealed that Mithril (MITH) will be the first project to see its token migrated n Chain.
“MITH will be one of the first projects to migrate tokens onto Binance_DEX. Our community, thank you for your support!” said Changpeng Zhao, Binance CEO. Additionally, the cryptocurrency exchange also announced that they will be adding support for MITH/USDT trading pairs today, April 19th. As a result, MITH price surged today. MITH is up more than 82% against the BTC over the last 24 hours.
BINANCE MIDAS TOUCH
While Mithril was the first project to announce its migration to Binance Chain, others are now following in its footsteps. Red Pulse, a market intelligence platform which covers China’s economy and capital markets, has also revealed that it will be migrating to Binance’s blockchain. Just as MITH, the price of Red Pulse’s token, PHX has also surged following the announcement.
Against BTC, the token surged more than 36 percent. However, its price has since pulled back a bit as PHX is up about 20 percent up at press time. Another token ENJIN , belonging to Enjin wallet, is also seeing considerable gains after announcing it would support Binance chain alongside the ENJ/USDT ticker being listed on the Binance exchange.
Binance Coin (BNB) Price Moon on the 52 Weeks after Leaving Ethereum
The Binance crypto exchange’s native token established a new 52-week high, up 81.49-percent from its 52-week low price of $4.19. The move prompted BNB to come closer to retesting its all-time high price of $24.91, which was accomplished during the January 12 trading session in 2018. But are there more gains in store for this crypto asset? Let’s take a quick look at its near-term market outlook to understand where it might head next.
MAINNET LAUNCH IN FOCUS
Binance on Thursday announced that it would launch Binance Chain, a public blockchain network which will support BNB tokens, on April 23. The exchange will soon integrate its decentralized exchange platform into the Binance Chain. At the same time, Binance will allow projects to issue new tokens on its chain, effectively enabling them to run initial coin offering rounds by raising funds in BNB.
Binance will earn a small fee from each trade on its decentralized exchange. The firm will also charge a listing fee from projects that issue their tokens on Binance Chain. According to CEO Changpeng Zhao, the listing fees could be as high as $100,000 based on the size of the project. Binance decentralized exchange will not hold custody of customers’ tokens. The service will most likely attract traders looking to retain the ownership of their private keys.
Binance confirmed that they would use a limited number of nodes to run the Binance Chain. It means that the custom blockchain will be less decentralized than that of Ethereum. On a positive side, it would be able to process “a couple thousand” transaction every second to ensure a smooth running of the decentralized exchange on it.
MORE GAINS AHEAD?
Binance Chain holds promises to attract more BNB adoption following its launch. On the other hand, Binance runs a token buyback event reduces its BNB supply every quarter. The economic outlook presents a bullish scenario for BNB investors in the long-term, boosted further by Binance’s impressive year-to-date performance in the market.
Binance Updates White Paper
to Reword Section
Binance has recently updated its white paper’s section devoted to quarterly manipulations with its native token binance coin (BNB), based on a version of the white paper backed up on the Internet Archive Wayback Machine on Feb. 8. According to the section “Repurchasing plan” in the older version, Binance stated that they would buy back BNB each quarter using 20% of their profits, and then destroy them until the exchange buys 50% of all 100 million BNB back.
In the new version of the white paper, Binance has replaced “Repurchasing plan” with “The Burn” section, explaining that every quarter, the exchange will destroy BNB based on the trading volume on its crypto-to-crypto platform until it destroys 50% of all the BNB. Both versions conclude that the exchange will eventually destroy 100 million BNB, leaving 100 million BNB remaining. The older version of Binance’s white paper was captured on Wayback Machine on Feb. 8, while the newer version appeared in the archive on March 31.
Binance’s older white paper version vs. updated version. Source: Binance
Binance BNB’s description on its website has remained unchanged at press time since November 2018, stating that Binance “plans to use 20% of its profits each quarter buy back and burn BNB, until 50% of the total BNB supply (100 million BNB) is burned.”
As a Binance spokesperson told crypto news outlet The Block Crypto, Binance will still burn 20% of profits within the process described in the new version of the white paper. Addressing the change, Binance CEO Changpeng “CZ” Zhao confirmed the news to The Block Crypto, claiming that the rewording was made to clarify that the exchange does not repurchase any BNB, but simply reduces the supply by burning the tokens. He said:
“We recently updated our whitepaper to better describe how we actually conduct the burn. For example, we removed the buy back reference because we actually don’t repurchase BNB and simply reduce the supply by burning BNB. We also removed the profit language because some regions tend to associate profits with securities, and we would like to distance BNB from that. So going forward, we plan to describe the burn this way, and burn what we burn.”
Yesterday, Binance launched its mainnet Binance Chain in beta testing mode for selected partners, also announcing that the exchange plans to execute the swap of its native token BNB on April 23. After that date, Binance will not support the withdrawal of ERC-20 BNB tokens, as the exchange plans to convert ERC-20 BNB tokens into native Binance Chain-based BNB (BEP2) coins.