Bancor (BNT)

Nov 08, 2018 at 20:13

Bancor, or Bancor Network, markets itself as “the world’s first decentralized liquidity network.” They make it easier for people to have any token they want for any token they have by ensuring on-chain liquidity between blockchain-based assets. 

BNT stands for Bancor Network Token, the official hub token of the Bancor Network. Activated in June 2017, the token made history on June 12 when it raised $153 million in Ether just a few hours after the ICO opened. It also landed in the news because of the notable investors who announced they would be buying BNT during the ICO, the most publicized of which was venture capital investor Tim Draper, founder of what is now Draper Fisher Jurveston. At the time of writing, BNT is valued at $1.36. 

As a protocol, Bancor ensures continued liquidity by having reserves of other cryptocurrencies (“Smart Tokens”), allowing the platform users to withdraw their cryptocurrency of choice easily. The pricing for exchanges between cryptocurrencies is automated and based on smart contracts and a simple computation: the reserve balance / (Smart Token’s total supply x reserve ratio). 

The Bancor Network has its own wallet. Powered by LocalCoin, Bancor wallet lets users convert cryptocurrencies instantly, send and receive payments without additional fees, and track and discover new cryptocurrencies for trading. 

The proposed uses of the Bancor protocol include: 

  • Stabilizing existing tokens through the Smart Tokens. Because Smart Tokens hold reserves of different kinds of tokens, and their trading value is determined by a simple formula instead of trading volume, the tokens retain most of their value and are less susceptible to market volatility. 

  • The creation of new tokens and easy ICO launch through the platform, with Smart Tokens used to back the tokens. 

The Bancor Network is managed and maintained by the Bancor Foundation, led by Foundation Council President Bernard Leitaer.

Where to buy?

You cannot buy BNT with fiat money directly; as such, you will have to buy another cryptocurrency and exchange it for BNT within the Bancor Network platform or through the Bancor wallet. 

BNT is also traded at Binance, Bittrex and HitBTC.

Is it mineable?

BNT has a total supply of 78,338,924 tokens with a current circulating supply of 65,669,726 tokens.