Binance Coin rises 6 percent – while the rest of the market sinks
Although the valuation of all cryptocurrencies combined dropped about $ 8 billion on Monday, the Binance Coin (BNB) emerged as the winner.
The rise of the BNB on both dollar and bitcoin has more than 200 million dollars increased. In the meantime BNB brought a plus of 34, 13 percent in the year to date, which signals an overall optimistic buying trend on the market.
'Futures' saves the day
BNB jumped despite a broader intraday bear market sentiment. It appears that this increase is closely related to the introduction of BNB-linked futures contracts from 10. February related. The platform announced the launch late last week.
“Today we have 16 Altcoins launched on our platform and excellent growth in our altcoin trading volume as some pairs quickly became number one in the futures market, ”said Aaron Gong, director of Binance Futures, adding:
“The BNB contract was a very popular product and will further increase the influence of the Binance Futures trading platform on the industry.
The service went live today, leading speculators to believe that it would help to some extent to increase the BNB's price in the spot markets. This explains in part why the coin skyrocketed impressively, even though its correlated rivals, including Bitcoin, declined.
The business expansion of Binance
Binance's CEO, Changpeng Zhao, announced the launch of a new service called Binance Cloud on February 7th. The entrepreneur, however, avoided giving further details, but merely stated that he wanted to see the platform “more as an infrastructure provider”.
https://t.co/ 34 rN2m5wIZ
– CZ Binance 🔶🔶🔶 (@cz_binance) February 7, 2020
People keep BNB because it is scarce due to Binance's business model. The crypto exchange regularly burns part of its profits (in BNB). At the same time, Binance ensures that the demand for BNB, through new products or platforms, continues to increase.
Proof of text: newsbtc