- BNB buyers galvanized into action to pump the token up by 11%.
- Binance CEO Changpeng Zhao allocating $1 billion to develop Binance Smart Chain further, triggered the run.
- Bullish pressure can push the BNB/USDT pair further higher.
KOLKATA (CoinChapter.com) – BNB bulls led their favorite token on a near-vertical rally to $442.3 after Binance founder and CEO Changpeng Zhao announced a $1 billion funding to jack up Binance Smart Chain (BSC).
The latest funding support for BSC comes a year after Binance announced the $100 million BSC Accelerator Fund to kickstart decentralized application (dApp) and ecosystem development for its smart contract platform.
Since then, Binance Smart Chain grew to support 1 million daily active users engaging themselves on more than 900 dApps. With the current $1 billion financial pledge, Binance plans to scale up four main categories to catalyze BSC’s significant adoption.
$1 Billion To Address 4 Areas
Out of the total $1 billion, Binance has set aside $100 million from the fund to mentor and onboard developers, spearhead education, award scholarships, fostering blockchain research, etc.
“A total of $100M funds are reserved for Talent Development which includes mentoring developer communities, educating new crypto investors, providing academic scholarships to universities, running boot camps, and supporting R&D on cutting-edge blockchain innovations around cryptography, multi-party computing (MPC), high-performance consensus protocols, cross-chain & multi-chain infrastructure, RegTech & Deep Analytics, and more.”said the official announcement
Another $100 million will find use in liquidity incentive programs. The fund will award liquidity rewards to projects based on innovation, total value locked (TVL), active users, or trading volumes. Plus, professional traders and institutions will receive support to infuse liquidity in various BSC decentralized finance (DeFi) protocols.
Builder and Incubation
To support secure and efficient blockchain development, Binance will allocate $300 million. Out of that, a $200 million financing will help incubate the top 100 innovative BSC dApps. In addition, their development teams will receive additional mentoring from venture capitalists and technical support from core community members.
And the rest $100 million will be,
“…utilized to conduct regional and global hackathons, white hackers benefiting joint bug bounty programs, running developer conferences, and supporting existing mainstream development programs.”
Remaining $500 Million For Accelerating Blockchain Adoption
With the remaining $500 million, Binance seeks to go beyond BSC and sharpen the blockchain ecosystem.
The idea is to eliminate redundancies in mainstream blockchain adoption and close the gap between cryptocurrency, blockchain, and the current technical, financial sectors.
BNB/USD Technical Setup
BNB soared on the back of intense buying pressure on Monday. The momentum, although diluted, still seems to control BNB’s upward price action. Binance’s native token just retested the $442 resistance. However, it provided strong resistance suppressing any avenues of growth beyond the said price.
But the token still has the potential to chart further upside. Bulls would need to place the buy bids until the BNB/USDT pair rises enough to top $519. Again. The gateway to the last all-time high at $691 would open up once $519 is reclaimed as crucial support. However, $541.7 would also be a roadblock and would also need some good old bullish tackle.