However, despite the rise, according to Bitcoinist, Binance will not share profits with holders of its in-house token due to regulatory hurdles.
In an interview on March 4th, Zhao Changpeng has claimed Binance will not pay back investors through their token (BNB) as it would not be beneficial for either party involved. On the issue, he replied on Twitter saying:
“No, that would make (BNB) a security, and you don’t want that,”
Changpeng it seems wants to steer clear of the security debate that has swirled around coins like Ripple’s XRP. A payout to investors it seems would bring them into this debate as it could break rules and
Binance’s token has soared from 20th to seven in terms of the biggest within the market, a remarkable shift and is now trading at $15 US dollars, almost at its highest point of just under $25 US dollars.
With this momentum in price and the new Launchpad as well as the DEX, it has been said that Binance could become the new Ethereum and overtake the company in the future.
Without a doubt, BNB is getting closer to the positioning of BTC and ETH in terms of payment and ecology.
However, Binance will not want regulatory issues to curtail this rise in any way and this appears to be a smart business move from Changpeng which could position Binance further as the leading figure within the crypto space.