Binance’s native coin, BNB, is starting to rise in value over a teaser that the Malta-based cryptocurrency exchange posted on Twitter today.
— Binance (@binance) May 21, 2019
The tweet, consisting of a picture with the numbers “2.0” emblazoned across a black background have lead many to speculate that the world’s largest exchange could be about to launch an updated version of the app and tradeview with margin trading.
Twitter users rushed to say that they thought this was the case, despite global regulators cracking down on the practice.
The Binance API was updated in March to include two variables; “isSpotTradingAllowed” and “isMarginTradingAllowed”. These variables seemed to point at the fact that Binance was in the midst of enabling margin trading capabilities.
Then, in early May, changes that were made to the Binance API seemed to unwittingly hint that margin trading was imminent. A beady-eyed Reddit user observed that the isMarginTradingAllowed flag (that have previously been disabled) was now live for nine pairs. The pairs were: BTC/USDT, BNB/BTC, BNB/USDT, EHT/BTC, ETH/USDT, TRX/BTC, TRX/USDT, XPR, BTC, and XRP/USDT.
Binance had previously said in the feature roll-out section of their whitepaper that margin trading would be enabled in the future, before futures and spot trading became available.
>Margin trading refers to a type of trading where the user is able to borrow money to participate in trading. Referred to as ‘leverage’ these borrowed funds are then used to increase the amount of money that is being traded, thus increasing the return if the trade is successful. Of course, the customer has to pay some interest on the ‘loan’ as well as set parameters so that if the trade does not go as planned, they do not end up in mountains of debt.
As a result of the speculation and the fact that Binance appear to be almost ready to make a big announcement, resulted in BNB rising more than 9% over the last 24 hours, and over $2 since the tweet was posted.
Now worth $31.4 at the time of writing, this is its highest ever value since the coin was launched in 2017. It now ranks as the 7th biggest coin in the world with a market cap of $4.18 billion, according to CoinMarketCap.
Over the last few months, the Binance coin has been described as “the gift that keeps on giving for investors” due to its steady year-to-date gains that remain unrivalled by any other big-name cryptocurrency. This price surge has been due to a number of positive changes that have occured on the Binance platform.
Events such as the launch of its custom blockchain, pegged as competition to Ethereum is just one example. Its implementation will result in the migration of over $3billion of BNB from the Ethereum blockchain and onto the Binance chain.
The fact that margin trading could be set to drop at any moment, has set the value of the coin in another upwards trajectory. With all eyes on Binance over the coming hours and days, we can expect to see BNB continue to make steady gains, before stepping up a gear if, and when the news drops.