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If you're wondering why BNB and DOT are pumping

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by COINS NEWS 237 Views

If you use Binance, you will most likely have already seen this, but if you don't use Binance then allow me to explain.

This pump happens every time there is a new launchpool advertised on Binance. The launchpool is a farm of a new token which is launching on Binance. Generally, you can stake BNB, BUSD and one other coin. This time, the coin is DOT. So as you might imagine, there are going to be a lot of people who are buying BNB and DOT right now in order to secure themselves a higher yield from the farming rewards of the new coin, presently the new coin is ATA (Automata) which is Binance's 20th launchpool token to launch. ATA is a decentralized service protocol that provides a privacy middleware for dApps. Binance has previously launched coins such as ALICE which is used in the game My Neighbour Alice and TLM which is used in the game Alien Worlds (just to name a few of their projects, there are more).

These launchpool coins come in all kinds of varieties and uses as you can see by the examples given. From gaming, to tech, to lord only knows what in the future. This launchpool is one reason (not the only reason, but a large one) for BNB to pump a lot when it does, and I would expect it to continue to pump over the coming days along with DOT as more people clock on to the recently announced launchpool and they decide that they want part of the rewards

I hope this info helps and I'm sure there will be more info in the comments over time

Have a good day guys!

submitted by /u/denimglasses1
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