Although the valuation of all crypto currencies together fell by about $8 billion on Monday, the Binance Coin (NBB) emerged as the winner.
The NBB’s rise on both the dollar and Bitcoin has increased its market capitalization by more than $200 million. Meanwhile, NBB has brought in a 34.13 percent increase so far this year, signaling an overall optimistic buying trend in the market.
“Futures” saves the day
NBB’s leap occurred despite a broader intraday bearish mood in the market. It seems that this rise is closely linked to the introduction of NBB-linked futures contracts on 10 February. The platform had announced the introduction at the end of last week.
“WE HAVE LAUNCHED 16 ALTCOINS ON OUR PLATFORM TODAY AND HAVE SEEN EXCELLENT GROWTH IN ALTCOIN TRADING VOLUME AS SOME PAIRS HAVE QUICKLY BECOME NUMBER ONE IN THE FUTURES MARKET,” SAID AARON GONG, DIRECTOR OF BINANCE FUTURES, ADDING
“THE BNB CONTRACT WAS A HIGHLY SOUGHT-AFTER PRODUCT AND WILL FURTHER ENHANCE THE IMPACT OF THE BINANCE FUTURES TRADING PLATFORM ON THE INDUSTRY.”
The service went live today, prompting speculators to believe that it would help to some extent to raise the NBB’s price on the spot markets. This explains in part why the coin shot up impressively, despite the fact that its correlated competitors, including Bitcoin, declined.
The business expansion of Binance
The CEO of Binance, Changpeng Zhao, announced the launch of a new service called Binance Cloud on February 7. However, the entrepreneur avoided giving further details, but simply stated that he would like to see the platform “more as an infrastructure provider”.
— CZ Binance 🔶🔶🔶 (@cz_binance) February 7, 2020
People hold NBB because it is scarce due to the business model of Binance. The crypto stock exchange regularly burns part of its profits (in NBB). At the same time, Binance ensures that the demand for NBBs, through new products or platforms, continues to grow.