The cryptocurrency issued by the world’s largest cryptocurrency exchange, Binance Coin (BNB), has recently seen its price surge by a double-digit percentage, after Binance, headed by Changpeng Zhao, announced it is going to double the referral bonus users holding a certain amount of BNB will receive.
According to data from CryptoCompare, BNB’s price surged from about $12.1 to a $16.1 high, before falling to $15.12 at press time. The cryptocurrency had been trading between the $12 and $13 range, before the exchange’s announcement.
The rally saw BNB’s market cap surge to roughly $1.7 billion, which saw it become the 18th largest crypto by trading volume, and one of the most traded cryptocurrencies in the last 24-hour period.
Per Binance’s announcement, users will need to have a balance of 500 BNB (about $7,560) or more to see their referral rewards doubled from the standard 20 percent to 40 percent. These rewards represent a commission users get by referring other users to the cryptocurrency exchange.
The cryptocurrency’s price likely surged due to increased demand, as various traders likely started buying to reach the 500 BNB mark on their accounts. Recognizing this would happen, some speculators could have also bought the cryptocurrency in advance, to sell it at a premium later on.
Moreover, users will have to hold the 500 BNB tokens in their accounts to keep receiving a 40 percent commission on referrals. This means the number of actively-circulating BNB tokens is now going to be much smaller.
Binance is a well-known crypto exchange, in which daily trading volumes often go past the $2 billion mark. As covered, the company is now more profitable than Germany’s largest bank, and has signed a $15 million crypto investment agreement with Bermuda