With Bitcoin now hovering around $8,000, traders are once against getting excited about the cryptocurrency market. As traders re-examine their portfolios, the question of whether now is the time to invest in altcoins will certainly be raised. While significantly riskier than the king of crypto, Bitcoin, altcoins do offer the potential for outsized returns. One coin that certainly appears to be making all the right moves is Binance Coin (BNB). Although the token has benefited from a wave of good news and strong deals, the CoinFlip partnership, announced in March, is the one that may prove to be the most beneficial.
BNB Recent Performance
The chart above clearly shows just how strong the BNB coin has been over a period when nearly every other cryptocurrency has lost more than 90% of its value. In fact, back in April, BNB became the first cryptocurrency to rise above its former ATH value against the USD back in January 2018. And the value has continued to skyrocket since. So, what caused the increase in value? Well, there are several reasons why:
- Utility – BNB coin allows traders to receive huge discounts while trading on the Binance platform
- Coin Burning – A coin burn is the process of intentionally eliminating coins by rendering them unusable. This can be done by sending the coins to an ‘eater address.’ Although the initial supply of BNB coins was set to 200 million, the exchange has said it will burn the BNB equivalent of 20% of their quarterly earnings. That will continue until only 100 million BNB coins remain.
- IEOs – Also known as Initial Exchange Offerings, IEOs are fundraising events that are administered by a crypto exchange. Binance was the first exchange to begin offering these and requires that traders use BNB tokens to participate.
In addition to the above reasons, the CEO of Binance, Changpeng Zhao, has become one of the most recognizable faces of the crypto movement. He has made a lot of great decisions since he started Binance in July 2017. But, perhaps his best decision was partnering with CoinFlip, which was announced on March 22, 2019.
With nearly 200 ATM locations across the United States, CoinFlip is the undisputed king of cryptocurrency ATMs in the United States. The company’s mission is to provide consumers with the best cash-to-crypto experience possible. The ATMs are not only next-generation but also intuitive and easy-to-use for both the purchase and sale of cryptocurrencies.
One of the best parts of the CoinFlip ATM experience is the wide selection of cryptocurrencies that are offered.
Readers may be wondering how the partnership will create additional demand for the Binance Coin. The primary reason is that the deal opens up the coin to more people. There are a lot of people who aren’t tech savvy and being able to quickly deposit cash in an ATM is appealing. There are also many people who are concerned about privacy and would rather not to have to go through cumbersome identity checks at online exchanges.
For deposits and withdrawals up to $900, a customer only needs to input their name and number. Once the number is entered, an SMS code will be sent to the customer’s cell phone for confirmation. It’s a quick and painless process. Although the fees are already the lowest of any crypto ATM operator, customers can find additional discounts by visiting CoinFlip’s Twitter account. There are also some useful articles explaining some of the basics of the cryptocurrency market as well as how to begin using ATMs on the company’s blog page.
During the past year, Binance Coin has been one of the best performing altcoins in the cryptoverse. Utility, coin burning, and the IEO boom on Binance are the main reasons for the surge in BNB’s value. But what I’m most excited about is the long-term potential of the coin. And a big part of that future potential was made possible through the CoinFlip partnership.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via CoinMarketCap.