The price of BNB has rapidly increased following the announcement from Binance that the popular exchange will be doubling its referral commission rewards under certain conditions.
Tell Your Friends
The Malta-based exchange has announced that it will be doubling its referral commission rewards to 40 percent for qualified accounts.
Accounts eligible to receive the increased commission rewards are those which hold 500 Binance Coins — approximately $7355 at the time of this writing. Writes the Binance Team in an official statement:
Binance will double referral commission rewards to 40% for all accounts that hold 500 BNB or more, starting from 2018/05/19 0:00 AM (UTC). Each user’s commission rate will then be adjusted at 0:00 AM (UTC) each day based on their BNB holdings. The commission rate for all other users will remain at 20%.
Note: The daily snapshot of BNB holdings will not include any BNB locked in-order or pending for withdrawal/deposit.
— Binance (@binance) May 18, 2018
The exchange’s Referral Program works by allowing users to invite their friends to trade on the popular cryptocurrency exchange. When such friends accept, the user who sent the invitation receives a percentage of his/her trading fees as commission in real-time.
The announcement has sparked a price pump for Binance Coin (BNB), presumably due to an increase in demand in order to receive the double referral commission rewards. At the time of this writing, BNB is up 20.56 percent over the last 24 hours.
It is worth mentioning that Binance is no stranger to what some may construe as actively pumping its own coin. The exchange conducts a coin burn every financial quarter with a percentage of its operating profits — and isn’t shy about selectively reminding users when one is impending.
Failure to Launch
Binance has also been in the news this week following the announcement that the popular cryptocurrency exchange would start offering TrueUSD (TUSD) trading on Friday, May 18, at 4:00 am (UTC). The exchange has since postponed the launch of the USD-pegged stablecoin to May 22, at 4:00 am (UTC).
The scheduling change apparently came after an evaluation of the coin’s interest in the community brought forth concerns over having sufficient liquidity, with Binance stating:
Due to popular demand, the TrueUSD (TUSD) project team requires more time than originally planned to prepare for sufficient liquidity. Binance will therefore postpone the trading start date to 2018/05/22 04:00 AM (UTC). Deposits for TUSD will remain open during this period. Thank you for your understanding.
[Full Disclosure: The author of this article holds BNB.]
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Images courtesy of Twitter/@binance, Shutterstock