According to research firm Weiss Ratings, Binance Coin has been so successful because of its centralized nature, this despite the association of the cryptocurrency with decentralized networks.
Weiss Ratings, a private company which provides research and analysis for consumers and business professionals, sent out a tweet on Thursday in which they expressed their opinion about Binance coin and why it has been so successful in 2019.
The tweet from Weiss Ratings:
Because #BNB is centralized, its creators are constantly creating new use cases for it, which increases its market cap and keeps the asset going. BNB is successful BECAUSE it’s centralized. Interesting.#BinanceCoin #BTC #Altcoins #crypto #cryptocurrency
— Weiss Crypto (@WeissCrypto) July 25, 2019
In the tweet, Weiss Ratings claims that the success of Binance Coin has been because of the amount of uses cases for the token. This corresponds to what Binance stated in May of this year. According to the Binance team, Binance coin currently has more than 83 use cases, an increase of 55 since March 2018.
According to the report, the majority of use cases for BNB are derived from the launch of Binance Chain. On top of that, more than 24 cryptocurrency projects have publicly declared that they will launch their tokens on the Binance Chain.
In April, Weiss Ratings already tweeted about Binance Coin, joking that BNB showed signs of the new Bitcoin:
It seems #BNB is leading the market now – when BNB is up, the market is up – and vice versa. Is BNB the new #BTC? #bitcoin #crypto
— Weiss Crypto (@WeissCrypto) April 22, 2019
The research firm recently also ranked BNB as the 6th best cryptocurrency based on technology, reward, risk and adoption. According to Weiss, since BNB is issued on Binance DEX, it can be seen as a store of value.
Binance Coin is currently the 6th largest coin by market cap, trading at $ 27.66. The cryptocurrency is down 4.67% over the past 24 hours.