BNB Lists on First Platform Outside Binance Exchange
The ERC20-based token issued by one of the world’s largest crypto exchanges, Binance, has been listed for the first time on another platform outside of the Binance exchange. Binance Coin – or BNB coin – got listed on eToro, a trading and investment platform with a reported over ten million users. The move could be lauded but the rationale behind it is still unclear considering that both platforms – eToro and Binance – could best be considered competitors.
Expose BNB to more users
The eToro platform currently hosts 12 cryptocurrencies – Bitcoin, Ethereum, Bitcoin Cash, XRP, Litecoin, Ethereum Classic, Dash, Stellar, NEO, EOS, Cardano and IOTA. According to a media statement, eToro’s decision is meant to give existing investors on its platform who want to diversify their crypto holdings the opportunity to add BNB to their portfolios. The new platform is expected to make the diversification easier with a click through the addition of BNB on eToro’s CryptoPortfolio.
High demand for it
The BNB coin is only used on the Binance exchange to pay for trading fees to enable users get a discount on their trades. Also, it emerged as one of the best-performing currencies in the past year. One plausible explanation for eToro listing BNB could be because of an increasing or an anticipated increase in demand. After all, eToro enables its users to invest in various assets from stocks and commodities to cryptoassets. Adding BNB may be expected to help them gain new users, to retain some of the existing ones or to just improve the relevance of the UK-based platform in the market.
What is known is that Binance is still being considered a centralized company though it plans to develop a decentralised exchange (Binance Chain) and it wants to use BNB to power it. Any malfunction or a hack on the Binance system could see BNB’s price drop drastically. After its ICO in 2017, 200 million BNB tokens were created with Binance adopting a business approach to use 20% of its profit to buy back and burn some of the token every quarter until the total circulating supply is at 100 mln BNB.
eToro is regulated in Europe by the Cyprus Securities and Exchange Commission and regulated by the Financial Conduct Authority in the UK.