Currently, Binance Coin appears only to be down roughly 56% from its all-time high near $24.46. In fact, BNB actually is up almost 40% over the last seven days, according to CoinMarketCap.
Image Courtesy: Coinmarketcap.com (Binance Coin (BNB)
Regarding BNB's recent moves, Paone noted a possible correlation to Binance Launchpad activity. "The launch of Binance Launchpad has somewhat recreated the ethereum ICO [initial coin offering] craze and a little bit of the ETH pump associated with that," Paone posited.
Binance described its Launchpad, stating, "The Binance Launchpad token launch platform helps blockchain projects raise funds and increase their reach across the crypto ecosystem." The exchange continued, "We do this by offering a project’s tokens to up to more than 10 million Binance users*. With this platform, we grant our users the chance to be part of potentially game-changing projects."
The Binance Launchpad notably hosted the BitTorrent (BTT) token sale this year which sold out in less than 20 minutes, according to a January 28 Crypto Insider article.
In terms of renewed enthusiasm, Paone said, "Binance has kind of kicked off this boom again." He did include the U.S. has cracked down on ICOs, noting that the Binance ICOs are not open to U.S. investors (as well as certain other locations).
Paone explained many previous ICOs ran on Ethereum's platform, with investors receiving ERC20 tokens in return for their ethereum investment. "Now, when you're investing on Binance, you can only pay for this with BNB," Paone said. "Because of the relationship between Binance Launchpad and the 6-7x [gains] that you saw with BitTorren, there is a high demand for these ICOs for a lot of these users." Paone related BNB's price spike with such related BNB token demand.
Paone included the potential for this situation possibly to recreate a version of the former eth-based ICO mania for a period of time.
