On Sunday (March 24), the price of BNB tokens surged 17% to $17.28—following the announcement of a new token sale format for Binance Launchpad—before settling down to $16.77, still an impressive 10.77% rise in the past 24-hour period.
There is no question that Binance Coin (BNB) has been a star performer in 2019. Until today, its success could be attributed mainly to the following factors:
- The furious pace of growth (new features, such as support for purchase of crypto via debit/credit cards, and expansion to new markets) of Binance makes it very hard for competitors to keep up.
- Stealing market share from its competitors, which has led—according to the most recent research report on Bitcoin (BTC) trading on spot exchanges by Bitwise Asset Management—to Binance having the highest "real" daily BTC trading volume ($110 million, or approximately 40% of the total "real" BTC daily trading volume) amongst those 10 crypto exchanges that report actual/real trading volume.
- Upcoming mainnet launch for Binance Chain means that BNB will migrate from the Ethereum blockchain to its own native blockchain, and of course, the launch of Binance DEX (which is powered by Binance Chain) is good for BNB since gas and fees need to be paid in BNB.
- Huge popularity of the relaunched token launch platform Binance Launchpad and the wildly successful token sales on this platform during the past several weeks has created extra demand for BNB since with the exception of the BTT token sale, other sales have required payment for token purchases in BNB.
For the purpose of this article, we will focus on Binance Launchpad. The low initial price for the tokens launched on Binance Launchpad has created such high demand (in every token sale this year) that it has resulted in many disappointed investors being unable to buy any tokens at these sales.
In order to give more people a chance to participate in these token sales, Binance decided to use a new lottery system, details of which it announced earlier today:
The net result of the new sale format at Binance Launchpad is that it encourages HODLing BNB since only people who have held at least 100 BNB in the past 20-day period prior to a token sale have a chance to win "lottery tickets", which are required for taking part in the sale.
Naturally, the market took this as great news for BNB and reacted accordingly. According to CryptoCompare, the BNB price surged 17% from an intraday low of $14.73 to an intraday high of $17.28, before settling down to $16.77, which is still an impressive 10.77% rise in the past 24-hour period:
Featured Image Courtesy of Binance