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Crypto rating agency Weiss has made an astounding claim that the market is linked more to Binance coin than it is to any other coin in the market currently. This continues their run in the news, though not all of that has been healthy. They have been called out for their claim of a crypto-surge after the fact. The newest reason is drawing even more attention but this time it might be different.
One tweet started a flurry of activity all over the crypto scene and it was truly an understated tweet. They claimed that Binance Coin in the new coin by which to judge if the market is falling or rising and that it might have replaced Bitcoin as the de facto market leader.
“It seems BNB is leading the market now – when BNB is up, the market is up – and vice versa. Is BNB the new Bitcoin? #bitcoin #crypto”
Crypto-community laughs it off
The entire cryptocurrency community has laughed off the pronouncement as a delusion of grandeur on the part of Weiss. An analysis from ambcrypto.com was harsh in the extreme when referring to the so-called theory.
The writer of the particular article mentions quite a few thig, chief among them is the fact that Binance Coin is a relatively new entrant into the cryptocurrency market. That is taking into account the speed at which the cryptocurrency market moves.
While Binance is one of the absolute top online crypto exchanges in the world, the sheer volume and market share that Bitcoin has over BNB is immense. The writer says that a coin with a fraction of the power of the “king coin” simply can’t be used as a good metric. The maths, according to AMB, simply do not allow it.
Bitcoin has a market cap of over 93 billion US dollars. Binance Coins market cap is only 3.3 billion US dollars. Bitcoin is responsible for over 53% of the cryptocurrency market overall whereas Binance Coin is an afterthought at most. It is also telling that the Binance exchange, which controls close to 40% of all Bitcoin trades, is itself at the mercy of Bitcoin’s movements.
More on the topic of the scientific nature of Weiss’ research, the writer then said that no one had access to enough historical data to make any kind of assumption. The sample size and time frames are not strong enough for an adequate judgment of Binance Coin. They also mention that “when Binance is up, the market is up” could not have been tested as the market was mainly down during the testing and research of the time period in question.
Other argue that Binance is getting bigger and bigger
However, there are dissenting voices. There is a notable segment in the industry that sees this as the first step to Binance’s total stranglehold on the cryptocurrency industry. They point to the threats that Binance sent out to various companies once it had launched its own blockchain network.
They also point to the fact that Binance controls nearly half the total Bitcoin online trading volume. Since they have changed their system to use Binance coin as the medium of interchange, it could very well be that Binance is just piggybacking off of Bitcoin’s movements. While the overall volume might not be that large, it could be a good correlation nonetheless.