We have in the past mentioned Binance, and how it could be a huge play. Seeing the price action in recent weeks and months have more or less been profitable if you had followed our calls closely.
What’s causing the surge?
1. Most projects are silent or dead
The market is indeed hungry for new investment opportunities. Seeing that most of the projects that raised tens of millions, if not hundreds of millions (of dollars), have gone bust, under-delivered and silent – it is no surprise that investors are looking to invest into companies that already have working products.
2. Initial Exchange Offerings, the new ICOs
Additionally, Binance had just rolled out Launchpad – that enabled companies to raise funds on the Binance platform directly; thus circumventing the entire Ethereum network (eventually).
The success of Bittorrent Token (BTT) and Fetch AI (FET) in raising not only the full amount they were seeking from their Initial Exchange Offering (IEO), and the apparent over-subscription had in many pundit’s words kickstarted the bull-run in alternate coins. That’s right, people are handing millions of dollars once again to projects, on Binance. Whoever said ICOs were dead? It isn’t.
3. Gaining independence
To add a nail in the coffin (for Ethereum), Binance (already the most valuable coin on the Ethereum network) would be launching its own blockchain, dubbed the Binance Chain. On top of that chain it plans to build a decentralized exchange (DEX) – setting it apart from its rivals (other exchanges). This would allow Binance to operate eventually in a completely decentralized environment.
Binance as a company can then pick and choose the countries where laws were friendly, and work from there – which it is already doing right now, out of Malta. All these, investors hope will potentially to an insatiable need for the Binance Coin; to power everything – fundraising, trading, and even value transfer through its Binance Chain.
Where to from here?
Binance might be a good investment to hold on to for the longer term, but don’t expect it to be without risks. We are impressed with their execution so far, and will not be surprised if in the future it might be as valuable as Ethereum. However, please do not take these as investment advice, we are not professionals.