Cons of BNB
The Binance Coin (abbreviated BNB) utilizes the ERC20 token standard and is built on Ethereum’s blockchain. The Binance Coin is a native coin of the Binance cryptocurrency exchange. BNB tokens will be available for purchase on the Binance platform in the amount of 200 million. A major goal of the organization is to ensure that cryptocurrency exchanges operate properly while also making cryptocurrency trading and ownership more accessible to the general public.
With a 24-hour trading volume of $2,170,906,609 USD, BNB price today is $517.17 USD. In the current MarketCap rankings, BNB is ranked #3, with a live market cap of $86,264,773,339 USD. With a maximum supply of 166,801,148 BNB coins, it has a circulating supply of 166,801,148 BNB coins.
The cons of BNB are as follows as:
1) Binance Coin Is Heavily Centralised:
The huge control Binance has over BNB contributes to the centralized nature of the coin. In several wallets, up to 80% of BNB tokens are owned by Binance according to data collected by Ether scan.
2) Regulators around the world want Binance to be shut down:
Binance is finally being regulated in several countries, including the UK, Thailand, Japan, the Canadian province of Ontario, Germany, and Malta.
However, the biggest and most concerning news came more recently when Binance was completely banned in the UK. Major economies could implement a complete ban on the exchange as a result of this.
3)Cyber attacks are a major threat to the finance industry:
Cyber attackers find Binance a tempting target. An unsuccessful attempt to hack the system was made in March 2018, which led to Binance’s hacker bounty program.
A $250,000 reward was offered by Binance for information about the hackers. Another attack occurred in May 2019 that resulted in the loss of approximately 7,000 BTC (the equivalent of $40 million at the time).
4) Binance Is Operating A CeFi Exchange In A DeFi World:
Binance’s position is becoming precarious as decentralised lending and trading protocols continue to grow.
During an interview with CoinDesk’s Muyao Shen, CZ acknowledged that decentralisation was the way forward and acknowledged that Binance might lose its place as DEXs (decentralised exchanges), such as Uniswap, continue to grow.
And if that does indeed happen, BNB might not have much use left.
5)Heavy Competition With Other Smart Contract Cryptos:
With a huge DeFi ecosystem, interoperability with many top cryptos, and an army of developers, Ethereum might just blow everyone’s mind.
Cardano is dangerously close to launching its smart contracts, which are widely believed to be among the most advanced we have yet seen. Ethereum is not the only cryptocurrency to worry about.