BNB Price Jumps on New Launchpad Announcement
According to an official blog announcement posted on Sunday, March 24, the major cryptocurrency exchange Binance stated that it was making significant changes to its Launchpad’s token sale format.
Binance Launchpad is the company’s platform for launching new tokens. Just last week, the platform closed a $4-million sale for CELR (Celer Network) tokens. In February, Launchpad conducted a sale for the new token FET (Fetch.AI), which reportedly raised $6 million in just 22 seconds.
New Lottery Format
Binance announced that it was changing the next project on its Launchpad to a lottery format. Earlier, the system working on a first-come-first-serve basis, when meant that many users one the sale queues did not get a chance to buy any tokens.
To address that issue, the exchange outlined a lottery ticket format, where participants would be able to claim up to 5 tickets by holding BNB (Binance Coin) tokens during the 20 days leading up to the lottery. Each ticket would be worth 100BNB.
Now, with this new system, once the lottery is concluded, the winners will be announced, along with the amount of funds each of them will receive. The figure will be based on the number of tickets a participant has used in that lottery as well as the amount of BNB holdings he or she had in the 20-day period before the lottery.
Users have the option of choosing how many tickets they wish to use in a lottery from the 5 allocated to them. This can be done in the 24 hours period before the lottery starts.
Binance stated that it is also expecting some fluctuations in the price of its native BNB token before and after the lottery period, however, it feels that the impact of this should be minimal.
The company also feels that other market participants could possibly view this change as an opportunity, which would lead them to counter-trade. This would smooth out the fluctuations.
Binance Coin Price Shoots Up
Following this announcement on Sunday, the price of BNB, the exchange’s native token, shot up by a massive 17% to trade at $17.28. However, later the price of the token settled down to $16.77, which is still a 10.77% increase for the last 24 hours.
Binance Coin is expected to be one of the top performing cryptocurrencies this year. The reasons for this are many. Binance’s massive pace of growth, which includes expansion to new markets as well as the introduction of new features on the platform, taking away market share from its competitors, the upcoming Mainnet launch for BNB, as well as the massive popularity of Binance Launchpad.