Binance Coin Eyes Another ‘Flippening’ Event as Exchange Offers Token Reward for Testnet Competition

Binance Coin (BNB) continues to climb the crypto market index following the launch of its new decentralized exchange. In an effort to hasten adoption, Binance CEO Changpeng Zhao recently announced that users will have the opportunity to earn BNB tokens for test driving the new platform.

BNB Price Update

Binance Coin climbed 1.1% on Sunday to $11.55. The native token of the Binance exchange peaked near $12 earlier this weekend before ebbing lower in the last 12 hours. BNB was also trading higher against bitcoin and Ethereum. The BNB/BTC exchange rate rose 1.2% to 0.00299690. BNB/ETH climbed 0.8% to 0.08634615.

At current values, BNB has a market capitalization of $1.63 billion, according to the latest available data.

From a technical point of view, Binance Coin has additional scope for further gains in the near term.  The coin is presently trading within a known supply zone that tracks from $11.00 to $11.60. A break from this area could give the bulls the latitude to re-test the $14-$15 range.

Last week, Hacked accurately predicted that BNB would soon displace Tron (TRX) for ninth spot on the crypto market index. Now BNB is taking aim at the no. 8 pivot currently held by Stellar Lumens (XLM), which is valued at roughly $1.7 billion. Stellar’s weak performance in recent months makes it a prime candidate for displacement by the surging Binance Coin.

BNB is not only trading near seven-month highs, its market cap has doubled since the beginning of the year. Trade volumes have also picked up sharply and were last valued at $93.3 million, according to CoinMarketCap. The token has a circulating supply of 141.2 million units.

$100 in Tokens Up for Grabs

Following the launch of its new decentralized exchange, Binance has announced a new incentive scheme to aid in the development of the DEX mainnet. Binance CEO Changpeng Zhao delivered the announcement Friday in a Twitter post, where he offered $100,000 worth of BNB as reward for the “testnet trading competition.”

Exchange users with at least one BNB token in their account are eligible to participate in the simulated trading competition. Each address will receive 200 virtual BNB tokens.

Binance will be holding two contests: the “Token Competition for Healthy Price Volatility,” with up to 3,000 BNB up for grabs, and the”Absolute Return Competition” with up to 3,000 BNB available.

From the official blog post:

“All users who hold at least 1 real BNB on their Binance account will be eligible to participate in this Binance DEX Simulated Trading Competition. Each Binance.com account is able to register a maximum of 20 Binance Chain addresses and will receive 200 virtual testnet BNB tokens to each address to use as their starting funds before the Binance DEX trading competition begins.”

The BNB token has been the most consistent gainer of all the major tokens this year. This will likely serve as an added incentive for users to participate in the program.

The competition will begin on Mar. 7 and run through Mar. 21.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi