Coins like binance coin

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    Binance is not the only cryptocurrency exchange to offer its own coin. The BitMax cryptocurrency exchange also created its own currency. Both companies give rewards to those who hold some of their currency to increase the value of their coins. While both coins are likely to be good investments, Binance seems to take their coin more seriously than BitMax does.

    Binance is willing to spend 20% of the company’s profits for the foreseeable future buying their own coin back from its owners and then destroying it.

    By buying their own coin and reducing the total supply of Binance coins, Binance increases the price of their currency. Binance would obviously not spend 20% of their total profits to increase the value of their coin if they did not expect their coin to increase greatly in value over time.

    This does not, however, mean that the BitMax coin is necessarily a worse investment. It could very well increase by more in value over the next few years than the Binance coin will. However, it is the case that Binance takes their coin very seriously if they are willing to risk so much money on it.

    Answered on August 7, 2019.
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