Binance Coin – or simply BNB crypto – is one of the most valuable cryptocurrencies in circulation… But it pales in comparison (at least value-wise) to some of its big brothers. However, its value lies in more than just its dollar value. That’s because unlike many other cryptos, it’s much more than a “store of value.”
Let’s start with the easiest example. Bitcoin started the year trading just under $30,000 a token. It’s since doubled in value. Any way you slice it, that’s impressive growth. And naturally, Bitcoin has gobbled up a lot of the headlines in the cryptosphere. This makes perfect sense, of course. Bitcoin was the first crypto to elbow its way into the market place. So, in many ways it’s the benchmark upon which other coins are measured. But that comparison just doesn’t make as much sense anymore. Here’s an analogy…
Let’s step into the time machine and say it’s the middle of August in 2020. You notice that biotech firms are making big strides in the market. So you start by looking at some of the heavy hitters. Novo Nordisk (NYSE: NVO) looks promising. It’s one of the larger biotech firms by market cap out there. Royalty Pharma (Nasdaq: RPRX) is another one that catches your eye. It’s got a diverse portfolio of royalties and is funding some interesting new therapies. Then of course, there’s Moderna (Nasdaq: MRNA), which you hear is making big strides with its vaccine against COVID-19. But you also heard about another company about to go public called CureVac (Nasdaq: CVAC). Which do you choose?
Access Isn’t Granted to All
Applying the gift of hindsight, it’s easy to see the winners. Those that were able to get their hands on any of the 13.3 million shares of CureVac for $16 made out like gangbusters. The first day, investors saw a return of 249.4%. Not too shabby!
But here’s the kicker. Not everyone had access to it right away. During a typical IPO, individual investors can’t get their hands on shares right away. In most cases, the underwriter of the IPO gets to allocate shares as it sees fit. The first round of shares trading at their cheapest often go to clients of the underwriter and other bigtime investors.
In this way, cryptocurrencies are similar to stocks. You can’t just pick up any coin on any exchange. And in some cases, this is where BNB crypto comes into play.
If you’re looking to trade cash for crypto, sure you can open your Robinhood account and choose from seven tradable coins. The trading platform eToro (you can check out our review here) added crypto trading to its list of services in 2018. But it only offers access to 15 coins right now. PayPal also lets its customers get in on the crypto action. But it only grants access to four major coins. There are actually some other problematic aspects to PayPal’s crypto checkout feature, but we’ll leave it at that for now.
How BNB Crypto Grants Early Access
Someone that wants access to some of the more obscure tokens will first need an account with a more robust exchange. And that’s where BNB crypto can come in handy.
There are lots exchanges out there. Coinbase is one of our favorites here at DailyBusiness. For those browsing but without an exchange to call home, you can sign up for an account here. But like we said, not all coins are on all exchanges.
Despite its many upsides, BNB crypto isn’t available on Coinbase. But you can pick it up on the Binance exchange. Which makes perfect sense considering BNB crypto essentially powers the Binance ecosystem.
It is the native coin of the Binance chain. Those with some BNB crypto in their wallet can use it to purchase other coins traded on Binance. And those using BNB crypto get a discount on transaction fees. This in of itself is a pretty nice perk. Binance also offers a rebate as an incentive for its use. But where BNB is really making headway is on other decentralized exchanges like PancakeSwap.
One of the altcoins drawing a lot of attention of late is the Elongate crypto. If demand stays as high as it is, it will eventually trade on one of the big exchanges. And if that happens, it’s value will rise… simply because of the laws of supply and demand and the ease of access. But those that want in on it now don’t need to wait for it to uplist to a major exchange. But they will need some BNB crypto.
PanacakeSwap operates almost like the underwriter of an IPO… At least in the way it gives access to obscure altcoins. And its crypto of choice is BNB. This duo grants access to a whole new world of cryptocurrencies.
The Bottom Line on BNB Crypto
Big ol’ institutions like BlackRock have suggested Bitcoin could replace gold as a safe-haven investment. Most of the investment world looked skeptically at the announcement. But there’s certainly an element of truth to that. Bitcoin is proving to be an excellent store of value – despite comments from the Federal Reserve.
But the BNB Crypto – not unlike Ethereum – serve purposes beyond sheer value. Ethereum has played a major role in fueling the NFT craze. And BNB crypto is more or less the crypto to buy crypto with. And this functionality has played a huge role in a fast and steep rise in value. During the time it took Bitcoin to double, Ethereum is up more than 200%. And BNB crypto is up more than 1,300%. That’s not because these are both excellent stores of value like Bitcoin. It’s because of their real-world functionality.
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