BNB’s New Life as a Corporate Reserve Asset
BNB, originally a Binance loyalty token, is set for a major conversion. A $100 million investment by former Coral Capital executives aims to position BNB as a corporate reserve asset.
On June 23, Bloomberg revealed that Patrick Horsman, Joshua Kruger, and Johnathan Pasch are in talks to raise $100 million. They plan to use this capital to buy BNB tokens in bulk. Their Nasdaq-listed company, soon to be renamed Build & build Corporation, will hold BNB as a reserve asset. This move could change how people see BNB,making it more legitimate. But it also risks exposing any flaws in the token.
The trio’s strategy is inspired by how companies treat Bitcoin.They believe BNB can be a long-term holding for their firm. BNB now works independently on the BNB Smart Chain, separate from Binance. But many still link it to Binance.
This link has been both good and bad. BNB powers a busy blockchain but has underperformed compared to other tokens. Since Binance’s legal troubles in 2023, BNB has gained just 6.43% this year. This is much less than Cardano’s 40.28% and Tron’s 126.32%.
Investors worry about BNB’s centralization. Binance’s founding team got 80 million BNB tokens in 2017. Though Binance has burned some tokens, critics say BNB’s governance is not as open as other decentralized tokens.
Build & Build’s plan is risky. BNB’s price has suffered due to Binance’s legal issues. Since Binance’s $4.3 billion settlement in late 2023, BNB has only gained 6.43% this year. This is much less than Cardano’s 40.28% and Tron’s 126.32% growth. The trio hopes to separate BNB from Binance’s shadow. They want to make BNB a safe investment for big companies.
BNB’s price has been hurt by Binance’s legal troubles.BNB’s initial distribution gave 80 million tokens to Binance’s team. Critics say BNB’s governance is not as open as other tokens. Binance’s co-founder, Changpeng Zhao, pleaded guilty to federal charges in November 2023. This has made investors wary.
Build & Build’s plan is a test. They want to make BNB a safe asset for public markets. BNB’s price has lagged behind other tokens. Build & Build’s bet is a first for a publicly traded firm. They aim to turn BNB into a long-term holding.This is like how some firms hold bitcoin. But BNB’s link to Binance is a problem. Binance’s legal issues have hurt BNB’s value. The trio believes BNB can stand on its own. They see it as a key part of their company’s treasury. Their success depends on changing public perception.They must convince investors that BNB is not just a Binance token. if they succeed, BNB could thrive. if not, it could fail. The trio believes BNB can shine on its own. They see it as a stable asset.But BNB’s future is uncertain. Can they change how people view BNB? Only time will tell.
BNB’s price has been low. Binance’s legal troubles have hurt BNB.BNB powers a busy blockchain. Yet, its price has suffered. BNB’s governance is seen as less open than others. BNB’s future is unclear. Their plan is risky. But it could make BNB a top-tier asset. Their $100 million bet is a big gamble. They hope to make BNB a top crypto.Their plan is bold. It could change crypto history. Or it could fail. The crypto world watches closely.
