BNB Coin Rallies To $500 After $1 Billion Binance Smart Chain Funding Announcement
The BNB currency surged in less than 24 hours earlier this week as investors responded to news that the cryptocurrency exchange has established a $1 billion fund to promote greater activity on its Binance Smart Chain (BSC) as well as the broader blockchain industry.
The digital currency, which trades under the ticker symbol BNB, climbed to around $470 on October 15, Friday; about a 20% increase from its price last week.
When asked what factors led to the recent gains, analysts referred to the introduction of the BSC fund as the primary cause.
The announcement of the $1 billion expansion fund, according to Scott Melker, a crypto investor and analyst who produces the podcast The Wolf Of All Streets, was a “clear trigger” for the rise in the price of Binance Coin.
BNB gained this awaited momentum after undergoing a broad sell-off in which nearly all cryptocurrencies lost value against both Bitcoin and the US dollar.
A Brilliant Manoeuvre During Cryptocurrencies Fundamental Shift
In his address last week, Zap Protocol inventor Nick Spanos again emphasised the importance of this $1 billion investment.
“The announcement of Binance’s $1 billion growth fund increased investor confidence in cryptocurrencies, and we witnessed a substantial increase in Binance Coin demand,” he said.
According to Spanos, it would be a huge fund which will be spent on raising the profile of the Binance Smart Chain (BSC).
BNB is primarily used to pay transaction and trading fees on the Binance exchange. Due to a significant percentage of Binance transactions being completed on the Binance Smart Chain, this growth fund is showing a promising future for Binance Coin.
The Right Path For BNB Future Price
“Some may argue that the introduction of this growth fund is not the sole cause for the recent increase in the price of BNB,” Spanos remarked.
However, he exclaimed that the announcement of this expansion fund is apparently becoming the main cause for BNB’s recent price rise.
Considering that many currencies and tokens, including Bitcoin and Ethereum, have recently fallen in value before rebounding, many think that BNB’s present price increase is not solely attributable to news of the aforementioned growth fund.
Andrew Rossow, an attorney who specialises in internet and technology law, also chimed in.
“This remark sends a strong message that Binance is putting its investment to further study about metaverse and blockchain, something that would have been considered trivial five years ago. The situation has changed,” he explained.
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