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Anyone familiar with Warren Buffett's "buying spree" of Coca-Cola stocks in the 80s can understand where we are going with this conversation on Binance Coin (BNB). But if you're not familiar with the history of Buffet and Coca-Cola, let yourself go back a few decades in 1988.
In that year, Buffett spent over $ 1 billion buying Coca-Cola shares. This amount was equivalent to 6.2% of the company and was directly after the 1987 stock market crash. This means that the time Buffett was making purchases was when the Coca-Cola stocks were cheap. His investment in 1988 grew 16 times as reported by Investopedia.com.
Why did the buffet choose Coca-Cola?
The fundamental analysis that led Buffet to buy Coca-Cola shares is no different than why crypto dealers could be attracted to BNB. At the time, Buffett saw that Coke's leadership was solid and that their expansion plans were global. The beverage producer also sponsored the 1996 Olympics. Coke was a brand that was known and had a successful product to support the claim.
Possible parallels between Coca-Cola and Binance
A few days ago, Ethereum World News summarized an eToro report on BNB. Part of the report included the question of whether BNB could be considered a security or utility token. We concluded that the token categorization depended on the particular laws of the jurisdiction that carried out the analysis. Each country has different laws and rules on the titles.
The report by Mati Greenspan of eToro, continued by listing the following positive facts about BNB.
- Changpeng Zhao has become one of the most influential figures in the crypto space
- Specific discounts on the exchange apply when using BNB to pay the trading fees. 50% during the first year of activity; 25% during the second (current discount); 12.5% during the third; 6.25% during the quarter; and zero discounts later
- BNB is used to support and invest in new ICOs on the platform launchpad
- Incentives for users to hold multiple BNBs as an increase in referral bonuses
- Use the case of BNB to pay for goods and services
- Funds for user-safe assets (SAFU) to cushion customers from exchange issues that could cause financial harm
- Decentralized exchange under development using BNB for trading commissions
- Creation of the Binance chain that will allow BNB to migrate from an ERC20 token to the new blockchain
- The active Blockchain Charity Foundation which aims to make the donation process more transparent
BNB Surges after a video demonstration of the upcoming decentralized exchange
On December 3rd, BNB traded at around $ 5. The same digital asset is now valued at $ 6.13 after touching $ 6.62 a few hours ago. This was a 32.4% jump in value compared to $ 5.
The reasons for this peak were twice:
- Binance confirmed that he was launching his Blockchain of Binance chain in the coming months
- A video demonstration of his new Decentralized Exchange was uploaded on Youtube. The video can be found below
summing up
We started this discussion by going back in time and analyzing why Warren Buffet bought Coca-Cola shares after the 1987 market crash. So we looked at why the BNB coin has everything that's going well including an exchange decentralized and its blockchain. Therefore, if we were to connect the points, we would see that Binance's currency deserves to be on the radar of traders and encrypted investors.
What do you think about BNB and the recent developments of Binance? Does the decentralized exchange further catapult the BNB? Let us know in the comments section below.
Disclaimer: This article is not intended to give financial advice. Any other opinion present here is purely that of the author and does not represent the opinion of Ethereum World News or one of its other writers. Perform your research before investing in one of the many cryptocurrencies available. Thank you.
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