Crypto Currencies

Is Bancor Network a scam? Opinion and report 2022

banking network reviewCan Bancor Network become one of the biggest trades in the world?

What power do users have?

Decentralized finance is experiencing a real flight ces dernières années. For this reason, initiatives such as Bancor are emerging, a network with which thousands of cryptocurrencies can be exchanged in seconds.

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In this article, I will explain what Bancor Network is, how it works, what you can do with it, and what you can expect from your BNT token.

What is the banking network?

Bancor Network is a decentralized platform that makes it easier for investors to trade between cryptocurrencies, making this process simpler, faster, and cheaper.

Exchanges can currently be made between nearly 10 different tokens, and all without the need for a counterparty.

Origin

The Bancor network was developed in 2016 by a group of Israeli entrepreneurs with some experience in the Silicon Valley start-up environment.

In 2017, it was the ICO( Initial Coin Offering) of its BNT token, in which they managed to raise $153 million in Ethereum in a few hours, a resounding success for developers, comparable to projects such as Tezos.

Since then, the Bancor network has enabled the exchange of more than $1,5 billion in tokens, and the development team has continuously made improvements to the network. Therefore, both its level of users and its liquidity have steadily increased since then.

How do I register with Bancor? It's certain?

You don't need to create a Bancor account to start trading tokens, just connect your cryptocurrency wallet. Currently, you can connect the following:

Regarding the security of Bancor Network, it should be noted that the platform has all the security measures necessary to be able to operate.

On its website you will find links to different audited reports in which they show that it is a secure platform. Plus, since there's no need to create an account, your security when working with Bancor Network also resides in your wallet.

Is Bancor Network a scam?

At the moment this does not appear to be a scam.

In my opinion, this company is not created to be a project made to deceive people. I think it is designed to try to become one of the challenge exchanges of the future.

What can happen is that the project does not finish working, either because it is not doing well or because it is cornered by the competition, in which case it could close or go bankrupt, but I doubt that it lends itself to scams at any given time. This does not mean that we exclude all possibilities.

At the moment it is a project with a good reputation in the crypto and challenge market.

How does the bank work?

The Bancor Network project sounds very interesting, but how does it actually work and what makes it different from others scholarships?

Like I said, the really innovative thing about Bancor is that when you want to exchange one token or cryptocurrency for another, you don't need a counterparty. In trades normal or in real life, for a transaction to take place there must be 2 parties involved, but Bancor only needs one person to complete the transaction.

For this system to work, there must be 2 types of users:

  • Users: are those who use the platform to trade cryptocurrencies.
  • Liquidity providers: these are users who wish to obtain an economic return passively by using Bancor.

When users want to make a trade, they just need to go to the Bancor website or a DApp that works with the Bancor protocol (eg 1inch) and select the tokens they want to trade.

Bancor is a exchange AMM (Auto Market Maker), so it uses a special algorithm to calculate the conversion from one currency to another. But for this operation to be carried out, it is necessary to understand the role of liquidity providers.

These users provide liquidity to the system by depositing their cryptocurrencies in exchange for commissions. All of this liquidity pools are nothing more than smart contracts used by the Bancor network so that user transactions are generated automatically.

Each time a transaction takes place, the user pays a commission, which is shared between the liquidity providers and the platform.

register in the banking network
Addition of liquidity in Bancor Network

When liquidity providers deposit their tokens in a liquidity pool Bancor, they receive a pool token, which indicates their participation in the pool. To enter one of these pools, BNT and another token, for example ADA, are usually used. However, there can also be ADA/USDB pools, the latter being a stablecoin backed by the BNT. For this example, a token pool ADA/BNT will be generated and can be redeemed for the initial amount of ADA and BNT plus generated commissions.

Moreover, and one of the true positive points of Bancor, is that it allows conversions between tokens that belong to different blockchains. Currently it only allows these conversions cross-chain between EOS and Ethereum, although it is assumed that more blockchains will be added in the future.

What can we do in Bancor Network?

In Bancor Network, you can not only trade cryptocurrencies, but you can also perform all these activities:

Trade

how to trade with banking network

Bancor Network allows its users to trade by exchanging cryptocurrencies. To do this, you just need to access the section swap from the left menu and edit your order.

You can place market orders or limit orders, that is, they are executed when the price reaches a certain value.

Polish

You can become a liquidity provider and passively earn returns on the Bancor network. To do this, simply select the pool that interests you in the section Date and click on the "+" icon.

This will bring you to a window asking you to indicate how many tokens you want to deposit into the pool, enter a number and click “Provide”.

Staking

In addition to providing liquidity to the system for returns, you can maximize your profits by staking your pool tokens. To do this, you must go to your Portfolio and click on the “+” icon of MyStake.

A box will then open in which you must select the token pool that you want to use for the staking. Choose the pool you want and select the token you want with bet.

staking on the banking network

 

Data

Dance Date, you can see all open pools and tradable tokens on the Bancor network. This will give you information on the performance you can expect from each pool, the time it will take to close, and the liquidity each pool has.

If you cannot find the pool you are looking for, you can create it by clicking on "+ Pool". In case the pool already exists, it will throw an error message, and if it has not been created yet, it will ask you to connect your wallet to make the first deposit.

Governance

Any user of the Bancor network can participate in the decisions taken concerning the future of the company. To do this, in the tab Vote of the Bancor platform, it is indicated that to participate in the vote, it is necessary to have vBNT staked.

To get vBNT, you need to access the exchange and exchange any cryptocurrency for vBNT. Once you have vBNT in your wallet, you can go to the tab Vote et bet these tokens.

The vote is done on the Snapshot platform, a decision that was taken by vote and obtained an overwhelming majority. If you have staked vBNT, you pouvez go to vote.bancor.network and vote on open proposals or even open your own.

The BNT token

As I mentioned throughout the article, Bancor Network has its own crypto -currency, which is widely used on the platform to provide liquidity to the system.

It is a token that runs on the Ethereum blockchain and currently ranks 89th on CoinMarketCap, priced at $4,54. The current token supply is 201,8 million, although the developers have yet to reveal what the maximum supply is.

Its price hit all-time highs at the time of the ICO, when tokens were priced around $24. After a sharp drop to $2, it got a boost during the rally of 2017, reaching $10 before falling back to $0,17 in the first half of 2020.

Apparently, BNT is gaining a bit of strength in recent months, especially in the first half of 2021, when it managed to multiply its price by 7 times.

How to buy BNT

how to buy bnt

BNT is a token accepted by many trades, so you will have no trouble finding it. I personally recommend you buy it on Coinbase for its high quality, ease of use, and security.

To do this, all you have to do is create an account and buy BNT with a card or deposit fiat currency via bank transfer.

Whichever method you choose, all you have to do is search for the cryptocurrency, select “Buy” and the amount you want to spend. With the computer, this is done from the “Rates” section, and on the telephone from the blue button that you will find at the bottom of the screen.

Final opinions and conclusion

Bancor Network is one of the platforms for decentralized finance which has strengthened the most in recent years thanks to the appearance of hundreds of new tokens that must be traded efficiently. But that's not all, Bancor also allows exchanges Cross-chain, i.e. between different blockchains.

There is no doubt that Bancor Network and other similar platforms will be very useful in the future, although it is difficult to know which one will survive in the long term.

Right now, we can see that Bancor's pool liquidity has grown very rapidly since mid-2020, as has its BNT token, which has risen from $0,2 to over $9 since then.

All this gives us clear indications that the crypto community appreciates the work of the BNT team and that they support the project, so everything indicates that the growth of Bancor Network has only just begun.


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