Today we’ll jump right into a coin we all know of...Binance’s baby.
Today’s review is Binance Coin.
Let’s dig in…
Binance Coin (ticker: BNB)
Wtf is this shit?
Today’s summary will be quick...basically, if you believe in the future of Binance, then you believe in the future of BNB. At its core, we are not fans of exchange specific tokens like this, but if an exchange is really here to stay, like the New York Stock Exchange (NYSE) of crypto, then so be it.
SO...Binance did ICO along with its launch, issuing 200,000,000 BNB. Binance offers a rebate discount for trading with BNB.
While this is great, we are not fans of how the discount progresses year after year. The discount decreases for each user depending how long they are users on the platform. Your first year you get a 50% trading fee discount, second year 25%, third year 12.5%, fourth year 6.75%, and fifth or later 0%, ZILTCH, NADA.
To help increase (or stabilize as they say) the price of BNB, Binance will use 20% of its profits each quarter and buy back BNB and burn it, until the amount of BNB has decreased to 100,000,000.
That’s basically it. We do like the concept of major exchanges incentivizing users to trade on their exchange by offering these discounts...but...why stop discounts after the 4th year? Shouldn’t you want to keep loyal customers? Why would we then even care at all what the price of BNB is with your decreased supply?
Anyways, there you go. That’s how it works. Binance is a solid exchange from what we have seen, CZ, their CEO, is vocal on Twitter and your funds are SAFE.
Who tf is behind this shit?
Changpeng Zhao (CZ) is the CEO of Binance. Before diving into crypto he was Head of Tradebook Futures Development at Bloomberg (Tradebook is their futures trading division) from 2001-2005, and then was a partner at Fusion Systems from 2005-2013. After that, he went on to act as head of development at Blockchain (blockchain.com) from 2013-2014, then founded BijieTech an exchange systems provider from 2015-2017. THEN, BINANCE. So..he has professional experience in both traditional and crypto finance...well suited for Binance. We all know what a success he has been.
All in all, mid-tier shitcoin, largely dependent on Binance, so the utility is quite limited. You can argue it’s low tier if Binance goes to shit.
Hope you learned some shit and be sure to follow us on Twitter for more shit.
- Mike and Aaron