Binance Chain’s First Token Struggles To Maintain Price Levels

, ,
Binance Coin Listing

Everyone knows the power house Binance has become. There is no question that the CEO of the company, Changpeng Zhao or better known as CZ, has a huge natural influence on the market as well. Recently, the crypto giant made new leaps in bounds by solidifying its native token BNB into an actual stand alone product or blockchain, Binance Chain.

Binance Chain Announcement

In April 2019, Binance finally launched one of the most anticipated items on their road map, Binance Chain. The project has taken longer than expected, but ultimately skyrocketed the BNB market value to new all time highs even greater than previous 2017.

Binance Coin Price Development Over Time Via CoinMarketCap

Clearly, the BNB coin price has shown huge gains in the market, but what about the underlying tokens shifting onto the Binance Chain? Now, let’s discuss the first listed token, Mithril.

What is Mithril

Mithril is a social media and social curation token that was built on top of the Ethereum blockchain. MITH has since shifted onto the Binance Chain as the first token in the entire market to make the move.

The result of the shift was evident in the price movement of MITH, but overall the result was not as favorable as expected.

Mithril Token Price Development After Binance Listing Via CoinMarketCap

From the chart above, it is evident that the Binance Chain movement announcement occurred on April 18, 2019. Following this announcement and increase in volume, the token price tanked to prices below pre-announcement in May. Without a full recovery to the listing prices, the Mithril token shows that a move to Binance Chain does not mean an increase in token price long-term.

Reasons to move to Binance Chain

Although the Binance Chain movement did not effect the price of the token long-term, Mithril has been building strong use-cases and utility. From the first listed token though, we can clearly see that moving to the Binance Chain will potentially provide a couple of positive results:

  • Short-term Price volatility usually with a price spike to retracement
  • Better chance as Binance Exchange listing and preferred Binance research (MITH is listed on both)
  • Better future chance of Binance Dex listing
  • Strategic partnership and network strengthening with the Largest Exchange and liquidity provider in the world for crypto
  • Potential increase in long-term volume which will potentially attract larger investors

Besides the listing, Mithril is doing it’s own internal development. Finally, let’s take a look at the token and review how the token is staying relevant in the current market.

Mithril Vault

The Mithril Vault is a personal custodial solution for anyone to store your crypto on the Mithril wallet vault system. Currently the vault is accepting MITH, BNB, ETH and multiple stablecoins. They are constantly looking to add more projects to the vault in order to increase the user base of the project.

Strong advocates for the the Mithril Vault are:

  • Ability to passively stake MITH on the vault
  • Holding MITH on the vault will trigger you for an airdrop of the MachiX token
  • Quick shifting from MITH to ETH and other stablecoins
  • Securely hold your assets online through your phone number off of exchanges

Mithril Staking

The Mithril token is centered around the application Pie Pie (formally known as Lit). The app has seen multiple developments since launch in early 2018 and is currently focused on the Asian market.

A great thing about this app is that you are rewarded based on likes, views, and time frame with MITH tokens. To get more rewards, simply stake more MITH on the Vault and you will be rewarded accordingly!

Overview

In summary, moving your project to Binance Chain is great for a long-term partnership with a premier liquidity provider. Cement your project in the running for joining the upcoming Dex, but do not expect a crazy inflation of token price long-term. With that being said, volume and use-case are all things serious investors look at before putting money into any project, so it does not hurt to have more honey to attract the bees.

*Nothing in this article should be taken as financial advice or investment advice.