After hitting bottom on March 13, Binance Coin (BNB), Binance’s cryptocurrency, has gained 151% in its price in the past month alone. Driven by the closeness of Cartesi’s Initial Exchange Offering. A token in which to be able to invest, Binance users must first acquire BNB in large quantities.
What is an Initial Exchange Offering?
Before talking about Binance Coin, it is necessary to know the event that we mentioned at the beginning of the article.
For the crypto world, 2017 was a wasteful year, fueled by Bitcoin’s big bullish rally after its second Halving. Well, as BTC approached $ 20,000 per token, optimism spread to the rest of the crypto market. Increasing the price of altcoins, and leading many people to launch their own cryptocurrencies during this period.
This is the reason behind the popularization of Initial Coin Offering (ICO) this year. Processes that tried to emulate the Initial Public Offering of the stock exchanges, in the crypto world. Allowing a Blockchain company to put a certain amount of tokens up for sale to investors. They could acquire them at a certain price, obtaining profits if the company was successful and the tokens rose in price on platforms such as Binance, the world’s largest exchange.
It should be noted that Binance Coin experienced that ICO’s explosion, since the token was officially issued in July 2017.
In this way, the tokens functioned as a kind of shareholding, with a value determined by the development of the company behind them. Which naturally led to a series of scams that ended up delegitimizing the instrument towards the crypto community.
However, Blockchain companies still need a means to raise funds, given the practical impossibility of going to traditional financial markets. Reason why the Initial Exchange Offerings (IEO) are born. They would have a similar objective to the ICO’s of 2017, but they would be carried out in the controlled environment of exchanges such as Binance, which would guarantee the legitimacy of the project behind the token.
Cartesi’s IEO powers Binance Coin
In the specific case of Binance, the exchange requires anyone who wants to participate in the IEO of a new cryptocurrency to make their purchases using Binance Coin, their virtual currency. Which leads to the days before the launch of a new token, the demand for BNB grows exponentially. Thanks to which Binance Coin has gained 151% in value, just in the last month.
All this expectation has been generated due to the launch of Cartesi in an IEO in Binance. A Linux-based token, which attempts to become a platform for developing decentralized applications. Thus becoming the direct competition of other weight cryptocurrencies such as Ethereum or TRON.
With this, the value of Binance Coin would currently be in the order of $ 15.13 per BNB. Living one of the most important recoveries since March 12 of the entire crypto world. After the crypto market plummeted due to the arrival of the Coronavirus in the west. Thanks to which, this becomes our Today’s Data here at CryptoTrend.