Sometimes it seems like the entire crypto market is hypnotised by the spectacular gains on a few select coins — Bitcoin, Ethereum and Ripple.
Bitcoin gained 1300 percent in 2017, before its fall from grace thanks to the great Chinese crypto crackdown of early February. Ethereum rose 10,000 percent while Ripple surged out of nowhere with a price increase around 30,000 percent.
But what if I told you there was a digital coin that saw a 22,000 percent rise in just six months that absolutely no one seems to be talking about?
And that a new coin hopes to follow its playbook into the stratosphere?
The Binance Coin began life in mid-2017 at 10 cents a coin but topped $22 within six months. Even its current price — depressed along with the rest of the market — it’s made gains of more than 10,000 percent.
Binance’s stroke of genius was to give users a 50 percent reduction in trading fees for using Binance Coins (BNB). Consequently users will pretty much pay whatever the market price is whenever they need to purchase more BNB to cut down on fees — and the more people trading on Binance, the higher the price of BNB.
With Binance swamped by demand, BNB has hit the top 25 cryptocurrencies worldwide and turns over around $2.7 billion a month.
An additional factor helping pump up the price is you can’t just trade any currency for another on Binance. Only Bitcoin, Ethereum, USDT and the Binance Coin are in trading pairs with most of the other currencies.
So if you’ve got Stellar and want to buy NEO you’ll need to convert it to BTC, ETH, USDT or BNB first. And of course you’ll end up with two lots of trading fees.
The simplest way to cut down the cost of the transaction is to use BNB as the intermediary currency. That way you’re sure to have enough BNB to cover the fees — and won’t have to make a third transaction to buy more. You also don’t end up with any crypto ‘dust’ leftover that you can’t sell.
Binance’s fee reduction strategy has already been proven to dramatically increase the price of the BNB coin — and there’s no reason it can’t work again.
A model similar to Binance’s is not a risky ICO bet on a new and emerging technology that may turn out to be vaporware. It is a credible and proven strategy to grow the value of a new digital currency. And you can get in on the ground floor.
Melbourne company Nauticus Exchange will open soon, offering 100 cryptocurrencies and six fiat, but only BTC, ETH and the Nauticus Coin will be able to be directly exchanged for all the other altcoins.
Using the Nauticus Coin as an intermediary currency will result in a 50 percent discount on trading fees, which will drive the adoption, use and price of the coin.
Past performance is no guarantee of future profits of course, but this coin is following a playbook that netted clever Binance ICO backers in July 2017 a 22,000 percent gain.