Binance confirms the status of the market leader, as it was already more than once. Now CZ (Changpeng Zhao) has announced the launch of his own stablecoin BGBP, backed by the British pound.
Bet on Brexit
Most experts agree that it is Binance and its CEO CZ that in 2019 play the key role on the crypto market and change the game. So it was with the IEO format. This crowdsale format due to Binance Launchpad has almost replaced the discredited ICO format. New coins are listed on exchanges immediately after tokensale and can be traded, giving room for enrichment to speculators and investors.
Another one case was the decentralized exchange Binance DEX. The decentralized exchange, in contrast to the centralized one, provides an opportunity to enter the market for investors from countries that cannot trade at centralized exchanges.
What for CZ launches stablebcoin BGBP? It would seem that there are already enough stablecoins. Now we have coins backed by dollar, euro, Swiss franc, yen. Even one stablecoin is enough to wait out the storm on crypto market. And it is almost impossible to make money with stablecoins, because of low volatility.
But this is for bad thinkers. Smart investors can use great opportunities with GBP. It’s because of brexit! According to supporters of the exit from the European Union, the UK gives too much to the EU and receives too little. After separation from the general European economy, in their opinion, the British economy will show explosive growth. And along with it, the national currency will grow too. CZ admits this possibility, therefore, he launches his stablecoin.
What growth are we talking about? If we look at historical data, the pound followed a downtrend and basically dropped all the time, while the UK was first in the European Economic Community (EEC, from 1973), and then in the EU (since 1993).
In 1973, the exchange rate of the US dollar to the pound exceeded the level of 2.25. Since the time of the Maastricht Treaty on the Creation of the EU, in 1993, the pound has mainly been at the level of $ 1.6 per pound. Now – only 1.27.
But with hopes for Brexit the pound grew, and it collapsed when Brexit was postponed. Obviously, a stablecoin BGBP launched by CZ can quickly grow to at least $ 1.6 per pound, that is, it will increase of 1.25 x. Not bad, meaning – this is not a long term.
There is only one problem with the pound. They say about the UK: “When it leaves, it stays.” It is possible that it will be so with brexit. Then you cannot count on the growth of GBP and BGBP. Perhaps, with this uncertainty CZ has so far released only 200 BGBP. Slowly but surely, guys!