Binance Coin reaches market capitalization of $ 50 billion after the listing of Tesla shares.
Binance, the world’s largest cryptocurrency broker in terms of volume, announced the listing of tokenized shares of Tesla. This means that users of the platform will be able to buy and sell shares of the automaker represented in a cryptocurrency.
The exchange is the first to add tesla shares in the electric car maker. Tokens (TSLA) entitle you to a portion of the company’s real bonds.
Currently each Tesla share costs about $ 700, with the token format, users can buy the split shares.
The company has promised to expand the list of tradable tokenized stocks as demand increases. Users must undergo the KYC procedure, as the new product is not available to people in China, Turkey, the United States and some jurisdictions.
Binance launched the new product in partnership with the investment company CM-Equity AG and the Swiss platform Digital Assets AG.
Notably, stock tokens are not stocks, they only provide exposure to stocks, including dividends and stock splits.
BNB fires to new highs
Binance Coin (BNB), the broker’s native cryptocurrency, became the third digital currency in the world to reach a market capitalization of $ 50 billion earlier this month after the listing of tesla shares.
The currency, which was already on the rise, shot up more than 25% on Monday morning (12) and was even traded for $ 600.
In addition to Binance having announced Tesla’s stock listing, the company’s CEO has announced a new plan for the coin-burning program.
The firing event permanently destroys part of the tokens and serves to reduce the supply of BNB – this consequently makes the remaining tokens more valuable.
In the announcement, he stated that Binance will now burn BNB at a much faster rate.
Currently Binance’s BNB is the third most valuable cryptocurrency in the world, after Bitcoin and Ethereum.
Earlier this year, BNB was trading at around $ 37. Due to the recent rise in the currency’s price, whales began to move the digital currency in large quantities.
Binance Smart Chain
BNB is seeing an unprecedented rally that has increased more than 14 times, or 1300% this year.
In the last week alone, the price of BNB has skyrocketed by more than 100%. The Binance Coin price hike occurs as the DeFi activity on the Binance Smart Chain (BSC) reaches new highs.
This is because the Ethereum network has faced congestion and high fees since the beginning of the year. Thus, more and more people have opted for the Binance Smart Chain.
BNB reached 35% of Ethereum’s market capitalization, which means that the token needs to triple from here to outperform its main competitor.
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