Is Binance Coin (BNB) A Scam Or Is It Worth Purchasing?

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Since its initial coin offering Binances token has gone from strength to strength being one of only a handful of the many thousands of coins and tokens on the market right now that was able to actually build on its market share during the recent bear market. With Binance currently being the largest cryptocurrency exchange on the market right now, we can only see Binance Coin (BNB) gaining in value more and more as the years go by.

Although we tend not do give price predictions for coins, we would like to point out that the video below does a solid job of explaining what Binance coin does and what kind of price it may reach in the future.

Although Binance coin was initially released to be used as a way to make fees cheaper on the Binance exchange, its use cases have grown exponentially ever since its ICO. Binance have partnered with a ton of other services and merchants that will accept BNB as a form of payment that further takes up the circulating supply of the coin helping to increase its price.

In addition to this, the new Binance Launch Pad service is essentially a new type of initial coin offering service that is all done via the Binance platform. It is very similar to how Ethereum was used at the back end of 2017 where new blockchain tech companies were able to raise money by trading their token for other coins and tokens.

The best part about the Binance Launch Pad service is that all of the funds that these new blockchain startups raise have to be paid to them in Binance Coin and then all of the BNB that they receive are locked up in a smart contract for a set period of time. This also reduces the amount of BNB that is tradable and pushes the price up further.

At the time of the ICO, BNB had a maximum supply of 200,000,000 total tokens on the market. As a part of the deal, Binance said that they would use a part of their quarterly profits to purchase back tokens and then burn them until there are only 100,000,000 left. This will literally half the supply and further push the coins price up.

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With Binance soon moving off the Ethereum blockchain and starting their own main net, Binances CEO Changpeng Zhao has confirmed that multiple projects on the Ethereum network will be moving over to the Binance network. As their traffic will then be using BNB to pay for the fees of the traffic across their service rather than Ethereum, the use cases for Binance coin increase again!

In addition to this, Binance have also added a “dust” feature to their exchange where you are able to convert any small amounts of cryptocurrency that you hold on their exchange into BNB. Although this does kind of restrict the supply of the coin as many account will have tiny amounts of BNB, we feel that it is an excellent way to get people researching exactly what Binance coin is and what it can do! This in turn can lead to more people buying Binance Coin and holding it in their portfolio and further restrict the available supply forcing the price up.

All in all, we feel that Binance Coin is NOT a scam and we actually hold a small amount ourself. In addition to this, Binance have a ton of partnerships now with more being announced on a monthly basis right now. We doubt that these other established companies would partner with Binance if they were scammers.