Binance Coin (BNB) has experienced a giant pump since yesterday, increasing in price from $72 to $116 at the highest point. That is a giant increase for a big-cap coin like BNB. But, what has caused it? Is it just a part of the general boom in the crypto industry, or is there something else that might be pushing this coin forward that not many people have actually thought of?
I might be entirely wrong about this, but I have a theory I believe to be true in many ways when it comes to the recent BNB pump. And let me tell you, it might not be entirely over yet!
Take a look at the chart above. I would say that the pump in large part started sometime around the time of the white arrow. Do you know what happened at exactly that time? That is when the SFP (SafePal tokens) were delivered to everyone who took part in the Binance Launchpool for this token. And guess what, it launched immediately giving everyone who had invested a 10x price increase. Those who had some patience and waited until today, has been able to experience a price increase of 25x-30x.
Everyone who took part in the launchpool had to do so using BNB tokens. In other words, they were big-time owners of BNB already. The bigger BNB whale you were before, the more tokens you received. And what do you think would be a natural place to place your profit from the launchpool? Back in the Binance Coin.
About the Binance Launchpool
There was a giant interest for the SafePal launchpool, and as a result, there was a 164x oversubscription. This means that you if you applied to join in with 164 Binance tokens, you would only be accepted with 1 (and the rest would be returned to your wallet). There was also a cap saying that nobody can receive more than 200,000 SFP tokens, and 26 users fells into this category. But, can you imagine how much BNB those whales already owned?
You can read the full report about the SafePal token sale and distribution at Binance right here.
To receive 200,000 SFP tokens, you would have needed to subscribe to the Launchpool with an approximate of 40,000 BNB tokens or more. Now, that is quite massive. Once the token distribution happened, these people would have received back 39720 BNB tokens, while 280 BNB tokens would have been used to join the SFP launchpool and to get those 200,000 SFP tokens which came as the max amount.
And this is when the fun starts. Those 280 BNB tokens deducted had a value yesterday of 20,000 USD (approximately). Once the token was launched, they immediately reached a value of 200,000 USD, and with time, it has reached both 400,000 USD and almost 600,000 USD. For this amount, the same whales can possibly purchase between 2500-7500 new BNB tokens (if they decide to sell the SFP tokens). And these are only the biggest whales. More than 45,000 people joined the Launchpool!
Do you see where I am going with this? It is very possible that those who joined the launchpool used this awesome opportunity to invest from the giant win to buy even more BNB tokens, and that is what I believe has caused the very recent pump for the token!
What do you think?
Do you agree with me here, or do you think this is just a big coincidence that these incidents took place at the very same time? I would love to hear all of your thoughts and comments as well!
I have just ordered my very own SafePal, so I will post my very own review of the product as soon as it arrives. If you want to learn more about the SafePal and maybe order one yourself, visit the SafePal website.