Binance Coin (BNB) Hits All-Time-High against Bitcoin(BTC) After Binance Announces New Token Sale on Launchpad
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced on Tuesday that Celer Network (CELR) will be the third token sale of the year on its Launchpad platform, spurring a buying spree of Binance Coin (BNB) that propels BNB to an all time high against bitcoin(BTC).
Celer Network (CELR), the layer-2 scaling platform that enables off-chain transactions for payments and generalized off-chain smart contracts, is scheduled to start its token sale on March 19, 2 p. m. UTC. The crowdfunding event accepts only BNB tokens.
Unlike BitTorrent (BTT) and Fetch.AI(FET), the first two token sales of the year launched on Binance Launchpad, the Celer Network token sale sets an individual cap of $1,500, which will allow more investors to participate in the hot initial coin offering (ICO).
Binance Launchpad has taken off with the two previous token sales completed in a matter of minutes. BTT was, at one point, up 100% compared to its crowdfunding price, and FET once saw a 50% increase in price. It seems that CELR will “repeat that success”.
Binance CEO Changpeng Zhao (known as CZ) detailed the role of Launchpad playing in the success of token sales in his second live ask-me-anything session(AMA) session hosted on March 4. He said the token sale platform helps good projects raise awareness and exposure and generate high demand.
“Every time a project goes through Launchpad, many people know about the projects. …So the rise of awareness and exposure, and also credibility, is a very strong thing for any project. We also help them raise liquidity. Usually after the Launchpad initial sale, if nothing goes unexpectedly, they have a very high chance of getting listed on Binance,” said CZ.
The announcement of the new token sale is seen as a catalyst of BNB’s price rise. BNB, the current 8th largest crypto by market cap by surpassing Stellar and Tron, has peaked at a recent high of $13.84 on March 5, and at the press time, it trades at $ 13.44 at the press time, up 3.41% over the past 24 hours, according to Coinmarketcap. Moreover, the exchange token achieved an all time high against Bitcoin(BTC) yesterday, valued at 0.00364763 BTC.
However, investors should be careful when trading BNB tokens and ICO tokens. BNB usually sees its value soar before a token sale on Launchpad, but if users who bought BNB for the token sale fail to acquire new tokens, they often dump their BNB once the sale ends, bringing down the price of BNB. In addition, ICO tokens like BTT and FET decrease in value after the initial hype.