It have passed some months after the BEST IEO of Bitpanda. With the completion of the IEO, the Bitpanda was started Global Exchange (=GE). So Bitpanda has taken an important step in the direction of internationalization, to reach more traders and users. The main Use Case BEST represents the fees reduction when you trade. A further mechanism, in order to give the BEST a higher value, tokens are the regular Burnings of the BEST. These will be destroyed at regular intervals forever. This reduces the total number of available BEST Token in the long term, and creates an artificial scarcity. Now the first BEST Burning Event in front of the door. We’ll look at in this article, what will happen when you Burn in fact, and with what impact on the BEST rate can be expected.
First BEST Burning Event of Bitpanda
30. In January, it’s finally here. The long-awaited Burn of the BEST tokens that were used in the duration of the Bitpanda GE, and the broker’s fee reduction, to be destroyed at least to 25% forever. This news has temporarily led to the publication of a strong price jump from BEST. The BEST rate is increased within 2 days from EUR 0.05 to about EUR 0.07, which is an increase of over 40%! This has led not only to increased attention in the direction of the BEST, but also to more trust of the faithful IEO investors, who had to fight yet with bitter losses.
It’s now five days until the $BEST burn! ?
On the 30th of January, 2020 – we will burn at least 25% of the $the BEST that we have collected from users who used it to pay the trading premiums so far.
Learn more about this exciting event on our blog: https://t.co/CMFB7NKzAP pic.twitter.com/BsuMUWedjl
— Bitpanda (@bitpanda) January 25, 2020
The IEO started in June and was divided into four rounds. The BEST were Token at a price of 0.085 EUR, Private Sale and, respectively, 0,09, 0,095, and 0.1 GBP in the Public Sale rounds sold. Thus, the investors from the IEO, regardless of which round they have benefited are still not at the Break-Even point arrived. Some have been able to minimize through the Airdrop on the PAN-holder your losses at BEST, to a certain extent.
50% of all BEST in the long term should be destroyed
The IEO is run for Bitpanda very successful. The company was able to collect 43 million euros. For the investors it looked but in contrast, not so good. The demand for the BEST has already been covered in the IEO, and thus there were hardly any prospects as a BEST were final listed on the GE, and the Broker. Thus, the BEST course is broken even for a short time after the Listing to the bottom and could then after a few months, at 0.05 EUR.
One of the reasons was a negative snow ball effect. Due to the strong price to start of, sadly, many investors in a panic and wanted to get rid of your BEST as quickly as possible. This has then led to an even stronger price decline. But now the Situation has calmed down already longer again. Leads to increase in the coming Burning now to a further price? Can be achieved, the IEO’s price again?
A Burning process is a well-known mechanism in order to minimize the total inventory of the tokens and to increase the demand and the price thus. As a Prime example, you can take at this point Binance. Here are the regular Burnings have to be repeated price jumps led. Also another Feature that has been integrated, in order not to miss the Token for more Use Cases. A similar concept also Bitpanda followed.
The idea and implementation of GE and BEST-are strongly reminiscent of Binance and NBB, even if it is one or the other point some differences. BEST to get in contrast to BNB direct minimum value of Bitpanda awarded, the in the first year of EUR 0.12, and each year more is 0.0125 EUR.
The goal of Bitpanda is to reduce the total amount of the BEST in the long term by 50%. This means that the regular Burning Events are to take place, up to 50% of the BEST for always were burned. In the IEO Bitpanda has sold just under 50% and the rest of the Token without a Lock to keep for yourself. In order to achieve the ambitious target of 50%, would also have to believe at some point, the own stocks for part of it. 30. January is the start and already this Event has been priced in. But there are still some questions remained open, I would like to take up at this point.
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Open-ended questions to the Burning Event
In the official announcement of Bitpanda, it is mentioned that ‘at least’ 25% of BEST, which have been used for fee reduction, to be burned. This is of course a lot of room for speculation. We might experience a Surprise at 30. January? More BEST geburned than expected? Any surprising positive news could lead to a further price increase, as these cannot be priced in advance.
Further, the question of what will happen with the remaining 75% of the BEST for that. Theoretically, it could give quite a lot of different ways. Whether there will be an Airdrop for large investors or for the holder of Pantos (PAN), or nothing of both, we can probably only after the 30. Let’s say January. But it would certainly be pleasing, and would also strengthen the Community of Bitpanda, if these revenues to the investors would flow. Regardless of whether it is due to a higher Burn or Airdrop.
The Burning is not sufficient, in order to increase the BEST course in the long term. It takes much more than that. But above all new and active traders, which are still to be found on Bitpanda. This is clearly the trading volume on the GE identify. Since the actual value of the BEST currently stands at EUR 0.12, would not a Trader, just get almost twice as much when buying from the BEST, but this is still 25% of their trading fees. The natural demand within an Ecosystem and could lead to a long term BEST rate increase. Above all, it should be the aim to reach the Bitpanda specified value from the current level of EUR 0.12.
Interesting is also the ratio of the GE and Bitpanda are in the use from the BEST. Due to the much higher fees on the Broker, are relatively more BEST for the fee reduction than on the GE. Thus, the growth of the broker also plays a crucial role when it comes to the other Burning Events. However, the GE may not be missing at this point. The Trader will have a much lower trade fee, but act a lot more regularly than the users of the Brokers.
BEST price depending on further Use-Cases and success of Bitpanda
This also includes further Features to be added in the course of the year, counting, of course. Especially is eagerly waiting for the announced launch pad. This would not only mean a new Use-Case for BEST, but also more Small investors into the boat to get. Especially because you have to keep at least 5000 in the BEST to be the launch pad to participate. Thus, it could lead to an increased demand, if the launch pad is officially announced.
In addition, the tokenization of shares plays for Bitpanda an important role. On the Broker, various precious metals are acting directly. Now, it will come in the next step, also tokenized shares. This could offer retail investors new opportunities to trade fractions of a share. To do this, but there is still no further official information.
Bitpanda drives a particular strategy and you can get any information regarding the development and status leakage. Therefore, nothing else remains in the majority of cases, the left, as to be seen and to be surprised.
In conclusion, one can say that the success of BEST correlated with the success of Bitpanda to a certain extent. If Bitpanda make it still more a Trader should win for his GE, then that will go inevitably with a higher demand for the BEST hand-in-hand. This, in turn, could lead to a long-term increase in the price of the BEST.
On the other hand, Bitpanda already has many active users, the use of a certain part of the BEST. Thus, we can assume that even without an extremely strong growth to continue many of the BEST are burnt. For a well-founded statement of the actual Burn Rate, and what awaits us for the next Burning Events, we have to wait on official information from Bitpanda.
If it is in the 30. January should lead to any further positive News on the part of Bitpanda, then we can expect a sell-off. At least that shows us the past with other Burning Events from other Coins. Therefore, the expectations of a further price increase on Burning should be provided-the Event itself, currently to the rear. We are eagerly waiting for the next Thursday and will keep you up to date.
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