Interpretation: How will the new method of Binance IEO in 2021 affect BNB?

Original title: "Understanding the Mystery Behind Binance IEO New Gameplay in 2021"

Original author : Bell

In 2021, the long-awaited first IEO of Binance will come, but this is not an ordinary IEO.

In the past, the wealth effect of rising at the opening of the market was only available to a small number of lucky people who drew lots, but this time, everything has changed.

The key points of the new IEO plan are deeply hidden 

According to the interpretation of Binance’s new IEO regulations, anyone who holds BNB from February 2nd to February 8th can participate in the new registration activity, and the distribution will be distributed proportionally according to the average daily number of BNB held Token SafePal (SFP), with a maximum limit of 200,000 SFP per person.

This is a great benefit for all BNB holders.

For retail investors, the threshold for participation is lowered, as long as they hold BNB for a few days, they can participate. For large users, it is no longer necessary to set up multiple decentralized accounts to make new transactions, and one account can be easily done. Let more people more easily enjoy the wealth effect brought by Binance’s “new launch”.

At the same time, there is a paragraph in the new Binance regulations, although it is at the end, it is very important.

"The new purchase mode is not only applicable to participate in the launchpad token sale, it may be used in the future for the listing of new coins , allowing users to buy tokens (already listed on other trading platforms) at a discounted price before they are officially traded on the Binance platform. The snapshot of BNB’s daily average holdings may be earlier than the announcement time.”

This indicates that BNB holders will have new opportunities. Binance’s "coin listing effect" is well known. When everyone is chasing hot spots, BNB holders can Ambush the new coins on the shelves earlier than the market, which can be described as a crude and simple shortcut to getting rich.

Another thing worth noting is that after the new regulations, the snapshot of BNB’s daily average holdings will be earlier than the announcement time, which means that everyone should reserve BNB Get up and make adequate preparations for each pre-order "Binance New Listing Project" instead of waiting until the announcement is released.

How to understand this announcement from Binance?

A deeper look, for the market side, BNB is bound to attract a lot of smart investors Buy orders and long-term holding are no longer due to short-term changes in supply, demand and price due to IEO or a certain currency listing. It is expected that for a long time in the future, buying and long-term holding will have a great impact on the performance of the BNB secondary market.

In 2021, IEO will continue to empower BNB?

According to Cryptorank data, as of February 1, 2021, according to the historical return data of Binance IEO, among the 17 projects, the historical The average return rate has doubled by 16.6 times, and the highest return rate in history is nearly 24 times.

Some people even say that Binance’s IEO has helped users screen high-quality targets in advance in the bull market. After the promulgation of the new regulations, such a wealth effect will reach more BNB users, allowing more people to enjoy this "new" effect.

In the past, people would focus on the IEO project itself, and it is common to see an increase of more than 10 times. On February 3, 2019, Binance LaunchPad (the new currency issuance platform) launched the first phase of IEO project BTT after restarting, and it rose 5 times at the opening; in 2020, Binance launched the first IEO project WRX in the first year, with a maximum increase of more than 1000% .

BNB, which takes IEO as an important application scenario, is indeed constantly climbing new price heights in the process of new users.

On the day of IEO restart on February 3, 2019, the highest price of BNB on that day was 6.5 US dollars. On June 22 of the same year, the price of BNB once climbed to 39.59 US dollars , hit the highest point in history at that time, and the price of BNB increased by 6 times in less than five months.

The IEO wave launched by Binance in 2019 did not have the background of a bull market. It can even be said that the market is in a very calm period, and Binance is literally in a bear market Use IEO to pull up a small bull market. At the moment, with the continuous increase of market enthusiasm, large-scale mainstream institutions and traditional giants have entered the market, superimposed on the wealth creation effect of IEO, BNB's ceiling is extremely high, and its performance in 2021 is worth looking forward to.

From platform currency to ecological token to fundraising fuel, where is the ceiling of BNB?

The new regulations will increase the demand for BNB in the market. In addition to the short-term positive news, in the long run, there is a strong value support behind BNB, mainly due to the deflation model, It consists of three parts: landing scene and good expectation.

From the perspective of the deflation model, the genes of BNB determine the scalability of its value growth. Since its inception, Binance has taken BNB as the main value bearer of the company, using quarterly profits for repurchase and destruction, and directly binding Binance business profits with BNB, which is analogous to the high-quality stocks of star companies.

On January 19 this year, Binance announced the 14th BNB burn, destroying a total of nearly 3.62 million BNB, worth more than 165 million US dollars, and the burnt amount broke through again It is a record high. If Binance’s profit in the previous quarter is calculated by 20%, the profitability is really amazing.

According to the data of CoinMarketCap, the market capitalization of BNB has been ranked in the top ten for a long time, and ranked fifth at the highest point, ranking first in the platform currency market.

In the encrypted world, the price of a token represents the value capture and market expectations of the project or platform behind it, and the platform currency is an important reflection of the exchange's own value and ecological boundaries , the public's confidence in Binance is also reflected in the price of BNB.

From the perspective of application scenarios, as the initiator of the platform currency, the initial and most frequent scenario of BNB is the transaction fee deduction. A research report once pointed out that Binance, which has the largest spot and contract trading volume in the world, can offset the value of BNB by $20 just because of the deduction of transaction fees.

Now this application scenario has been extended to all aspects of the Binance ecosystem. Holding BNB, in addition to the IEO and new activities we mentioned above, you can also participate in the currency You can enjoy new coins through the Launchpool of Binance, and you can also participate in Binance to earn coins and mining pools to earn high profits.

According to statistics, up to now, there are a total of 14 Binance new currency mining projects. This zero-risk free new currency project has the highest annualized rate of return More than 115%. When multiple new coins went online, they skyrocketed by 5-10 times, which can be said to be a "free rich lunch".

As the only token of Binance Ecology, BNB’s value capture is no longer limited to transaction ecological fees, but the value of the entire Binance Ecosystem application scenarios Absorption and acceptance. In the past six months, the newly expanded DeFi field has become a top priority.

From the perspective of future expectations, the emergence of Binance Smart Chain (BSC) is a dimension-enhancing change for BNB, and it will be directly introduced into the vast world of DeFi .

According to the data of BscScan, on February 1, 2021, the number of addresses on the BSC chain is close to 1 million. On January 27, there were more than 770,000 transfers on the BSC chain, which was close to nearly 70% of that of Ethereum on that day, but the handling fee was still only 2% of that of Ethereum.

As of January 2021, BSC has supported 89 encrypted assets (including 36 types of BToken and 53 types of Native Token), the total value of cross-chain assets reached 1.866 billion US dollars, and the total market value of Binance Btoken reached 750 million US dollars.

In just four months since its launch, BSC has formed an ecosystem based on DeFi, NFT & games, and infrastructure, and has been launched With more than 100 projects, the ecological prosperity is increasing day by day.

The projects and users of BSC are directly related to BNB. For example, you can pledge BNB through BSC to participate in liquidity mining, make loans, or indirectly purchase US stocks, etc. And access to other public chain ecology through the bridging function to help BNB holders obtain excess returns.

Among all the public chains, BSC is the only public chain that has the opportunity to compete with Ethereum, and the role of BNB in it is the fundraising fuel on the underlying chain . Behind this is a group of millions and tens of millions of new users, as well as a huge amount of capital that is exploding in the DeFi world.

In summary, BNB not only enjoys the benefits of the huge Binance ecosystem, but also captures the value of the new DeFi world, crossing CeFi and DeFi, what is waiting for BNB in the future is A great possibility.

And all of this will be fed back into the long-term market price of BNB. When the heavy new regulations of Binance IEO are introduced this time, it may be that you hold The best time for BNB.

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