Binance Coin (BNB) takes off – here’s what’s behind it
The crypto exchange Binance’s exchange-owned token has been one of the top performers of the year. Now Binance has introduced a new feature for BNB that has helped the Binance Coin soar to new heights.
Led by the crypto lead horse Bitcoin, the overall market is currently showing its bullish side. The Binance Coin (BNB) is also in seventh heaven. With a daily gain of 15.17 per cent, BNB stands out among the top 10 coins with the biggest price increase. While the growing adaptation of the Bitcoin Loophole Binance Smart Chain (BSC) was primarily responsible for the strong performance in recent weeks and days, something else is behind the BNB rally this time.
Binance is now offering to stake BNB. This is according to an announcement by the crypto exchange, which Binance published on its homepage yesterday, 9 March. According to this, BNB holders can now use their tokens to generate passive income. Users can deposit their BNB for 15, 30, 60 or 90 days. The conditions depend on the duration of the lock-up period and the deposited amount, among other things.
Binance Coin Staking – an end in itself?
Binance Coin Staking is limited – according to the motto: first come, first served. It is therefore not surprising that the BNB Staking Option was sold out shortly after its launch. In any case, with NBB Staking you don’t have to give in to the illusion that you are participating in a decentralised network. The exchange has the final say on who belongs to the 21 validators of the Binance Smart Chain. It is not for nothing that the consensus mechanism of the BSC is called „Proof of Staked Authority“ – who qualifies as an „authority“ is ultimately determined by Binance.
The limited contingent of BNB Staking products ultimately points more to a marketing campaign than to an intended decentralisation of the network. For the BNB holders, however, concerns about centralisation are unlikely to dampen the bullish mood. Even those who missed the entry into NBB Staking could already profit from the mere announcement.