What is Bancor?
Bancor was the first decentralised exchange (DEX), to allow users to convert cryptocurrencies without needing to expose their private keys.
Bancor was named in honour of the supranational currency suggested by economist John Maynard Keynes. Keyne’s Bancor was meant to bypass the problems caused by international currency conversion, as the idea was that all international trades would be made in Bancor.
Eyal Hertzog, Yudi Levi, Galia Benartzi & Guy Benartzi founded the Bancor cryptocurrency in 2017 in Zug, Switzerland. Much of Bancor’s research and development is conducted in Tel Aviv, Israel.
Bancor’s network is used to exchange tokens and cryptocurrencies without the need for centralised cryptocurrency exchanges. Bancor is built on a network of smart contract, liquidity pools. These liquidity pools are used to perform algorithmic token trades.
Bancor V1 vs V2
On Bancor V1, users who provided liquidity needed to do so with both BNT tokens and the token that they were providing liquidity for, such as Ethereum. This however made Bancor less appealing to liquidity providers, as a number of Bancor’s competitors started to allow them to provide liquidity without the need for a secondary token.
Bancor V2 was launched in July 2020 and since then Bancor have hosted trades worth a cumulative $2 billion dollars. As a result of this, liquidity providers have made millions of dollars from transaction fees. Thousands of unaffiliated users on the Bancor Network provide liquidity and in return gain rewards in transaction fees.
For example, as a liquidity provider you could add Ethereum to the pool and each time Eth is traded with another cryptocurrency on the Bancor Network, you will receive a share of the transaction fees.
Unlike traditional exchanges, Bancor is entirely decentralised and allows users to trade over 100 different trading pairs. Crucially, adding liquidity on Bancor does not require permission from a central body or authority, this means that anyone that owns a compatible cryptocurrency can provide liquidity on Bancor.
Current Price & Circulation
Bancor is currently valued at $7.86 per BNT (18th March 2021), It has a total market capitilisation of $1,628,641,272 and a total supply of 164,488,683 BNT tokens.
BNT’s all time high was exactly $10.00 giving it a market cap of $1,644,886,830 (over 1.6 billion dollars)!
When Bancor ran its ICO in June 2017, it turned out to be one of the largest ERC-20 (Ethereum) ICOs of all time, raising over $153,000,000 in just a few hours. Due to the Bancor team’s continuous focus on research and development and the functionality of Bancor is a whole it is likely to become increasingly valuable in the years to come.
BNT tokens are available to buy now on many of the top exchanges including Coinbase & Binance, have a look at our Best Crypto Exchanges page to purchase Bancor today.