This is not your typical technical analysis. I won’t do that. I don’t know how. Here I will share some of my personal observations hoping to answer some questions from the community. My opinions may be subjective or simply wrong.

First thing first, the BNB portion allocated for the Binance team has not moved at all. I won’t repeat the explanation. You can learn how to check it on the blockchain here.

Second, there are no large accounts “keeping the price down”. BNB is spread pretty evenly on accounts on Binance.com. Some accounts are larger than other, but nothing too significant.

ICO’s do cause BNB price fluctuations immediately before or after. Since on Binance.com, we only have one account balance. If we are running an BTC based ICO, many people will wait till the last second before the ICO starts, sell the BNB into BTC, then use those BTC to buy the ICO. Then if they did not succeed in grabbing the ICO. They will buy back into BNB right after the ICO completes, usually less than 60 seconds later. This obviously causes a sharp BNB price decline and bounce back before and after the ICO. A sharp decline sometimes causes people to panic and follow in selling. Having an ICO run in BNB usually have the reverse effect. To counter balance this effect, Binance now run 3 ICO sessions (BTC, ETH, and BNB) simultaneously, with roughly equal allocations for each session. This causes more stress on the servers, but this is our strength. Even with this setup, there are still price fluctuations immediately before or after an ICO, providing plenty of playground for traders who are not interested in ICOs.

Adding a new coins could also causes price fluctuations. New coins, especially ones listing first on Binance right after an ICO, typically have larger price swings. Short term volatility traders will gravitate towards these. This draws “blood” away from other “stable” coins, and affects their price. On the other hand, a certain portion of people who made money on the ICO will cash out their profits and store it in a “stable” coin. These two effects are almost never balanced, creating volatility.

Rumors, unfortunately, also affect price. Even without any official confirmation, people do get affected by rumors, and actually trade on them. There has been plenty of rumors in the past few days about regulations, etc. Not a single person can show me an official source, but nevertheless, price get affected, usually negatively.

A couple tips on participating in ICOs on Binance.com. Buy in small amounts, not the full displayed available amount. Chances are between the time you see the available amount and you placing the order, someone has bought some, and your “full amount” order will fail. We now implemented a max buy portion (around 2 BTC) for our latest ICO, that worked pretty well. We also implemented Captcha bot blocking, and a count down timer to facilitate people in different time zones.

Binance have also tightened our screening process for ICOs. Going forward, they need to make information available in English and Chinese. As a result, there will be less of them.

We have added quite a number of China based projects (coins) in the past couple weeks, making our site feel a bit too Chinese heavy. We will pause this for a bit and add more western coins to make the platform more balanced. There is a vote for community coins this weekend, come and vote for your favorite coin(s), and help them get listed on Binance for free.

We always welcome suggestions from the community. If you have a good idea, please let us know, we will implement it quickly.

Cheers,

Changpeng Zhao, Binance CEO