Measures absolute and relative price fluctuations over several time frames and other variables.
Calculates returns in comparison to moving averages and other factors.
Measures the ability to scale, upgrade and other technological weaknesses or strengths.
Evaluates public acceptance, participation of developers and other key factors.
The risk involved with holding the Binance Coin (BNB) is based on two parameters: the general coin market cap and use of Binance services. If the coin market cap continues to increase and people continue using Binance as their preferred trading service (and continue to trade often) the coin value should increase.
The real ROI of holding BNB comes in the form of lower fees when trading on binance.com. Buying BNB gives Binance customers a kick-back in the form of a 50% discount on all transaction and withdrawal fees in the first year of use. After that, customers are given a 25% rebate in the second year and a 12.5% and 6.75% discount in the consecutive years. There will be no fee reductions in year five.
Another nice feature about holding BNB is using the coin as a means to move your funds from one cryptocurrency to another. For example, binance.com does not allow its users to purchase Ethereum from Bitcoin and vice versa – it must be done through an intermediary coin like BNB.
Binance’s plan to entice people to invest in their coin seems to be working well. BNB currently has a $1.05 billion market cap which ranks as the 28th highest in the crypto world.
The Binance Coin is an Ethereum-based token that allows users to receive a discount for any fees on the Binance platform, a pure cryptocurrency exchange that plans to create a decentralized exchange of blockchain assets. BNB also gives users access to special features and will be used to power the upcoming decentralized exchange.