What is Bancor?
Bancor is a blockchain open source protocol that enables easier token conversions. Users can directly convert between different tokens instead of exchanging them on cryptocurrency markets. Smart Tokens are created from Bancor’s network using smart contracts. The main aim of the Bancor protocol is to tackle the liquidity issues that is faced by tokens that have a smaller market capitalisation. Tokens with low liquidity cannot be bought or sold easily and vice versa. The liquidity of a token is determined by its consistent presence of buyers and sellers. Smart Tokens are ERC20-compatible tokens and are hence compatible with any system which supports Ethereum-based tokens. Moreover, as Smart Tokens feature built-in liquidity mechanism, they can be convertible for other tokens continuously. The Bancor protocol has its own native currency, BNT.
History of Bancor
Guy Bernartzi founded Bancorin in 2017 along with three other individuals.
Features of Bancor
The Bancor Protocol takes advantage of connector modules that hold the balances of different ERC20 tokens in a smart contract. The Bancor Formula recalculates prices constantly as a way to maintain the balance between connectors and smart contracts. BNT is the first-ever Smart Token on the Bancor Network and is held as a reserve by all other Smart Tokens. One of the main advantages of Bancor is that it eliminates third parties from cryptocurrency transactions.
Where to buy Bancor?
Bancor tokens are listed on exchanges like Bancor Network, HitBTC, Binance, Bitterx, Upbit, Liqui and others. Over 65 tokens are live on the Bancor network. The market capitalisation of Bancor tokens at the time of writing this article was $237,336,858.
Bancor tokens cannot be mined
In April 2018, Bancor launched its own wallet that enables users to buy tokens using a credit or debit card and instantly convert the token to any other token in the Bancor network. Instead of matching buyers and sellers, Bancor’s in-wallet conversions are made using smart contracts. This results into no commissions or fees for converting cryptocurrencies. By using WeChat, email address, Facebook Messenger and Telegram, accounts can be opened by Bancor Wallet users. The price of 1 Bancor token was $4.59 at the time of writing this article.
Bancor Price Trends
Risks involved with investing in Bancor
Similar to other cryptocurrencies, Bancor is volatile in nature. It is not possible to predict the rise and fall of cryptocurrencies. Hence, it would be a better option to invest in mutual funds as they are more reliable.