What Is Bancor Network Token (BNT) How It Works & Where To Buy It?

Bancor is among the most popular decentralized exchanges used globally. Bancor offers users access to DeFi products such as staking, farming, Bancor liquidity pools, and other exclusive features.

BNT can be seen as the virtual reserve currency of the protocol. Individuals can stake BNT in a liquidity pool and can earn an additional yield from the pool.

The BNT token is currently the 166th largest cryptocurrency by market capitalization.

 

How Bancor Network Token (BNT) Works

Simply put, Bancor is a decentralized exchange where users can easily exchange one cryptocurrency for another. However, Bancor and other DEXs differ from one another considerably. Bancor is first and foremost driven by its depositors: users that contribute collateral to Bancor pools.

The funds’ users’ deposits are used to support transactions conducted by investors globally. Anyone can use the Bancor platform to exchange their crypto tokens and deposit their tokens – this is done anonymously.

Depositors/stakers are rewarded with revenue yields for their contributions to the operation of the Bancor protocol. The Bancor protocol generates revenue by charging traders to execute their cryptocurrency swaps. The fees are distributed among depositors who help to facilitate their trades.

The concept of single-sided deposits makes Bancor different from other DEXs. Assume you have some spare ETH in your wallet and want to use it to generate passive income – Bancor allows you to do this. There is no alternative on any other DEX that is currently accessible to simply deposit ETH.

Every trading pair on a DEX is a portion of a pool of two cryptocurrencies, and any deposits into this pool must include an equal quantity of both of those assets. Essentially, each trading pair receives 50% of the initial investment.

However, this approach raises the prospect of impermanent loss. Simply put, this means that there is a possibility that your deposits could potentially decrease in value after being invested in a liquidity pool.

By providing novel single-sided deposits, Bancor eliminates this problem. You can deposit any of the supported assets, and Bancor will deposit BNT as the other asset in the trading pair. This ensures that depositors have a lucrative way to earn yields from trading fees generated on the platform. All of these processes are facilitated by smart contracts, liquidity providers, and decentralized protocol governance.

Individuals seeking to learn more about Bancor can read through the Bancor whitepaper.

 

What Is Bancor Network Token (BNT) Used For?

The BNT token is coupled with every token on the Bancor platform, such as WBTC/BNT, AAVE/BNT, etc. It’s also the default reserve currency of the protocol, and BNT stakers are guaranteed to be shielded against impermanent losses.

To get incentives and a share of trading commissions, users can stake their BNT into any trading pair pool that is offered on the Bancor network platform. By actively staking BNT and another cryptocurrency, like ETH, on the Bancor network, you can maximize your yields. You are eligible to collect 70% of rewards by staking BNT. Staking ETH or any other cryptocurrency in the pair, however, only nets you a 30% return.

BNT serves as a governance token as well. Voting rights for proposed upgrades or changes to the Bancor platform are assigned to holders and stakers of the BNT token. Bancor is one of the most broadly utilized decentralized exchanges globally.

Users can participate in a wide range of DeFi products from Bancor, including innovative features such as staking, farming, and liquidity pools.

Some experienced arbitrage and swing traders aim to capitalize on price fluctuations in cryptocurrencies. The price fluctuations between different cryptocurrency exchanges are typically relatively low, but large trades make these deals extremely profitable but also very risky.

 

Where To Buy Bancor Network Token (BNT) Token

BNT has become a popular cryptocurrency as DeFi adoption becomes more imminent. Bancor aims to provide users with generous yields, single-sided investments, and DeFi products that bolster their revenues.

BNT tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase BNT, you’ll need to deposit fiat money onto an exchange; sequentially, BNT tokens will then be credited to your digital wallet on the exchange.

The crypto exchanges below are amongst the safest place where you can buy, sell and store tokens.

1. OKX
2. HTX
3. KuCoin
4. Binance

BNT token holders who purchase BNT on a centralized exchange will need to transfer their tokens to a digital wallet like MetaMask to use Bancor’s DeFi products.

Users should consider transferring their tokens off centralized exchanges since doing so gives them complete ownership of their crypto assets and private keys.

None of the abovementioned information is investment advice.

 

About Bancor (BNT)

How long has Bancor (BNT) existed?

Bancor was initially launched on the 12th of June, 2017. The BNT initial coin offering (ICO) was the largest at the time and raised $153 million. 50% of the BNT token supply was sold during the ICO, and the ICO price was 100 BNT = 1 ETH.

What’s controversial about Bancor Network (BNT)?

Countless scam projects attempt to take advantage of the evident lack of regulation in the cryptocurrency industry by preying on ill-informed regular investors.

Let’s take a look at the top controversy surrounding the Bancor protocol (BNT):

• Bancor Paused Its Impermanent Loss Policy – In June 2022, the Bancor protocol implemented a pause on its infamous impermanent loss policy. This came about because of an antagonist that was posing a risk to the protocol. The change caused an outcry by members of the community, and many fear that Bancor is facing a possible solvency crisis.

How many Bancor Network Token (BNT) Tokens are there?

At the time of writing, BNT has a circulating supply of 229,535,638.24 BNT

The total supply of BNT is 229,535,638.24 BNT

Can Bancor Network Token (BNT) be mined?

BNT tokens can’t be mined. Various websites advertise services such as mining BNT tokens, but this is blatantly false information – BNT tokens aren’t mineable tokens.

However, the easiest way to earn generous yields on BNT tokens is by depositing them into a liquidity pool on the Bancor platform.

Some centralized exchanges allow users to earn yields from staking their BNT tokens.

What is the market cap of Bancor Network Token (BNT)?

The market cap of Bancor Network Token (BNT) is: the total amount of coins in circulation x the current market price of BNT.

Bancor Network Token (BNT) Market Cap = 229,535,638.24 BNT x $0.4891 = $112 million (166th largest market cap)

BNT is currently one of the top 200 cryptocurrencies by market capitalization.

Biggest Competitors Of Bancor (BNT)

The market for decentralized exchanges is expanding quickly, and several cutting-edge, reputable DEXs have already garnered significant market caps and have millions of active users.

Bancor is unique in the sense that it has a default reserve currency, and it shields users who deposit BNT from impermanent loss. However, the protocol has many competitors in the DEX space, many of whom offer excellent DeFi products and are recognized as very credible platforms.

Bancor’s Biggest Competitors are:

• Uniswap
• Sushiswap
• Pancakeswap
• 1INCH
• 0x

 

What Are The Future Plans of Bancor (BNT)?

Bancor aims to provide users with unique and valuable DeFi products. The DeFi industry has expanded significantly over the past few years, and several protocols are continuing to push hard to increase user adoption on their platforms. For many DeFi fans, Bancor has established itself as a trustworthy and credible platform.

In the future, the protocol will aim to dominate the cryptocurrency market. Bancor has quickly grown to become one of the most popular platforms and has managed to onboard hundreds of thousands of eager DeFi users.

 

Pros And Cons Of Bancor (BNT)

Pros:

• Impermanent Loss – According to the protocol, users that stake their BNT tokens are guaranteed no chance of impermanent loss. This has been considered to be one of the largest upsides to buying BNT because if the system keeps working as it has, the investment will keep yielding 70% profits from the liquidity pools.
• One Of The Largest DEXs – Bancor is one of the largest decentralized exchanges and the largest decentralized exchange that shield BNT depositors against impermanent loss.
• Low Token Supply – The current token supply of BNT is only 229,535,638. Compared to other decentralized finance protocols, this number is considerably low. Bancor is one of the leading decentralized financial systems where users can earn generous yields on their crypto tokens – when these value proponents are coupled with token scarcity, many would consider this to be a phenomenal project.
• Anonymous Trading – Bancor is an on-chain liquidity protocol that allows users to trade anonymously. KYCs aren’t a requirement to use the decentralized platform.

Cons:

• No Fiat Deposits – Users can’t make any fiat deposits on the Bancor platform. There are several supported cryptocurrencies, but fiat is not supported on the platform.
• Competiton – Bancor has managed to establish itself in the DEX space, but it is facing competition from the likes of Uniswap, Pancakeswap, and other large decentralized exchanges. Many of these exchanges have more users, liquidity, and more liquidity pools available than Bancor pools.