A BSC analyst has recently weighed in and explained the potential for the new GNOX token to become the new BNB, and this article examines both tokens and why GNOX holds so much potential.
Gnox is the first of its kind, a new reflection token that introduces a ‘Hold to Earn’ strategy generating passive income for its investors just by holding. Slated to release later this year the project has drawn significant attention from both crypto news outlets and investors. Promising to simplify DeFi (decentralised finance) earning, many investors have already partaken in the presale and locked in a 10% token bonus at launch.
Binance Coin (BNB)
Ranked fifth by market capitalisation, BNB has enjoyed tremendous success, and its early investors saw huge gains. The token was launched via ICO (Initial Coin Offering) in July 2017 and offered at $0.15 per token. BNB now trades at $220 and has traded as high as $690.
The popularity of BNB is directly linked to the popularity of the BSC (Binance Smart Chain) being the native token it is needed to pay gas fees on the network, and the popularity of the world’s largest CEX (centralised exchange) Binance where it is the utility token and entitles holders to trading fee discounts. With more and more investors entering DeFi, coupled with the BSC being the second largest ecosystem after Ethereum, demand for the coin has skyrocketed. Ordinary investors are also introduced to this token early on through the Binance platform, further feeding demand.
Why Gnox Could Become the new BNB?
According to the BSC analyst, the potential for the Gnox protocol to grow is staggering. This is all due to the growth-orientated design of the protocol and, more specifically, its treasury fund. Gnox’s tokenomics feature a buy and sell tax, meaning 6% of every token transaction goes towards building the protocol’s treasury fund. This treasury is used to generate yield within DeFi protocols, and every 30 days, the proceeds are split amongst GNOX holders.
The great area of potential is the long-term growth of the protocol and the potential upside for increasing payouts in stablecoin. The analyst noted that because the principal of the treasury is never touched, only the proceeds when Gnox hits the open market and is traded, there will be an influx of capital to the treasury. The accrual of funds to the treasury will only increase, meaning that in a few months, the protocol’s treasury could become highly capitalised and, depending on how it is utilised within DeFi protocols, could generate astonishing reflections for GNOX holders.
If these returns continue to grow, the token and its passive income stream will naturally become more desirable, meaning more buy orders. Not only will this drive the value of GNOX up, but it will also lead to more funds entering the treasury, further increasing its capital value and the potential payout to GNOX holders.
Find Out More Here:
Join Presale: presale.gnox.io/register
Source : cryptodaily.co.uk
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