Two days ago, on June 17, 2020, the Exchange BINANCE celebrated an anniversary. Exactly 3 years ago, the now globally active stock exchange published the first official version of its white paper.
The Binance story is extremely successful and controversial. The Binance Coin (BNB) was an important part of the ecosystem 3 years ago.
Binance: a three-year success story?
As I mentioned in the introduction, Binance's story is an unprecedented success story. The Exchange has become one of the largest, most versatile and probably also the best players in the crypto world in the last 3 years.
The stock exchange is valued by many because of its wide range of products, high liquidity and smooth functionality. But with all positive aspects, there are of course things in Binance that can be criticized. As part of the IEOs , the platform was often accused of filling their own pockets and being involved in pump-and-dump.
Regardless of all of these points, Tone Vays' criticism is primarily about the Binance Coin (BNB). As part of the three year anniversary, Binance gave some facts about the token and celebrated its massive growth. A key point here is the enormous return on investment (ROI) of 16,240%.
Tone Vays with strong criticism of Binance Coin (BNB)
Tone Vays said that the in-house Binance Coin (BNB) actually serves only one purpose: to make the profits of the Binance team as high as possible. Let's take a look at his criticism:
Vays complains about Binance's Token Burns. Over time, 20.1 million BNBs were burned, representing a total value of $ 543 million. The analyst Vays now argues that this is only done to increase the price of the tokens.
BNB as best practice of a utility token or hot air?
Logically, a drastic supply shortage with constant demand has a positive effect on the price. Furthermore, Vays said that BNB was created “out of thin air” and that the team still has a huge amount of tokens. In his opinion, the token has no real purpose.
Vays received criticism for this and was reminded that BNB is significant for the platform. Keywords here are the reduced trading fees or the eligibility to participate in the Binance Lottery as part of IEOs. In other words: BNB is best practice for utility tokens.
Vays, however, denied this and stayed with his view that BNB was pure speculation. He said that it was rather a kind of "unregistered security". If the meaning and benefit behind it really exists, Vays says, he wonders why large companies don't use a similar model?
At this point I am very excited about your opinion. Obviously there are two contrary views on the in-house token.
