What is Binance Coin (BNB)?
Binance coin is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. Binance exchange is the largest cryptocurrency exchange in the world as of January 2018, facilitating more than 1.4 million transaction per second.
Binance coin (BNB) was created in July 2017 and initially worked on the ethereum blockchain with the token ERC-20 before it became the native currency of Binance’s own blockchain, the Binance chain. Binance coin users receive a discount in transaction fees on the Binance exchange as an incentive. Binance can also be exchanged or traded for other crypto currencies, such as Bitcoin, Litecoin, Ethereum etc.
The idea behind BNB’s name is to show this new paradigm in global finance- Binary Finance, or Binance. Aside from being the largest cryptocurrency exchange globally, BNB has launched a whole ecosystem of functionalities for its users. The Binance network includes the Binance chain, Binance Academy, Binance smart chain, Trust Wallet and Research projects, which all employ the powers of blockchain technology to bring new-age finance to the world.
Key Takeaways
- Binance coin is the cryptocurrency issued by the Binance exchange and trades with the symbol of BNB.
- Every quarter, Binance uses one-fifth of its profit to repurchase and permanently destroy or ‘burn’, Binance coin held in its treasury.
- Binance coin was initially based on the Ethereum network but is now the native currency of Binance’s own blockchain chain.
- Binance was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including travel bookings, payments for transaction fees (on the Binance chain), online services, entertainment and financial services.
- At the time of writing, BNB had a market cap of more than $56 billion and ranks behind only Bitcoin, Ethereum, and USD Tether in terms of market cap.
Founders of Binance Coin (BNB)
Changpeng Zhao is the founder and CEO of Binance (BNB). In 2001, Changpeng Zhao joined Bloomberg as head of tradebook futures development. He spent four years with the company and later joined Fusion systems as a partner.
Since 2013, Zhao has been actively involved with blockchain technology and cryptocurrencies. He became head of development at Blockchain, and in 2015 he founded Bijie tech. After that in 2017, Changpeng Zhao officially launched Binance, and he has been the CEO of the company ever since.
He-Yi is the co-founder and chief marketing officer at Binance. In 2012, she started her career as a TV anchor and presenter on China Travel TV. After that Yi co-founded OKCoin in 2014, which was the largest fiat-to-crypto exchange in China at the time. Later, in 2017, she joined forces with Changpeng Zhao, and together they created the largest crypto exchange globally-Binance.
Binance Token Profile
The following is the token profile that explains all the important figures regarding BNB:
| Ticket | BNB |
| Max Supply | 168 137 036 BNB |
| Total Supply | 168 137 036 BNB |
| 1-year price high | $676.15 |
| 1-year price low | $27.46 |
| Market Cap | $97 706 525 529 |
| Markets | Ku coin, Binance , FTX, Gate.io |
Uses of Binance Coin (BNB)
Just like other evolving crypto currencies, the Binance coin offers several uses that go beyond the Binance exchange, such as
- Investment: Several platforms allow investors to invest in ETFs, stocks, and other assets using Binance coin.
- Trading: Binance coin (BNB) can be traded for other cryptocurrencies on various exchanges, depending on the restrictions set by the exchange.
- Payment Processing: Merchants can offer Binance coin as a means of payment for customers, offering more flexibility in payment methods.
- Entertainment: From paying for virtual gifts to buying lottery tickets, Binance coin serves several purposes in the entertainment space.
- Loans and transfers: Binance coin can be used as collateral for loans on certain platforms. Also, there are apps that allow users to split bills and pay friends and family through BNB.
- Booking travel arrangements: Binance coin can be used to book hotels and flights on select websites.
- Transaction fees on the Binance exchange: Binance coin can be used to pay for transactions on the Binance exchange, and users also receive a discount for doing so.
Advantages of Binance coin (BNB)
- Binance allow BNB holders to save 10 % on futures trading fees.
- Users holding Binance can also qualify for the Binance VIP programs to save even more.
- BNB holders can save 25 % on all spot trading and margin trading fees.
- Binance coin holders can earn rewards by staking BNB through the BNB vault.
- Binance offers up to 4% commission as bonuses to BNB users through its referral program.
Factors to consider before investing in BNB
- BNB can be used to invest in certain initial coin offerings that are listed through Binance’s launchpad program.
- New crypto currencies will be listed on the Binance exchange, and use of BNB will give a seamless marketplace for dealing in a variety of virtual tokens.
- BNB will ultimately become the primary currency of the decentralized binance exchange.
- BNB is also supported by the VISA debit card of Monaco, the pioneering payments and cryptocurrency platform and the platform, the mobile app.
Binance Coin: Initial Coin Offering
Binance was launched with an initial coin offering (ICO) in July 2017. As part of the ICO, Binance coin tokens were distributed among various participants, including angel investors and the Binance founding team.
Here’s a brief breakdown of how Binance coin tokens were initially distributed:
- Angel Investors: 10 % ( 20 million Binance coin)
- Founding team: 40 % ( 80 million Binance coin)
- Public sale: 50 % ( 80 million Binance coin)
All of the 100 million Binance coin tokens available for public sale were sold during the ICO at 15 cents per token. Therefore, Binance raised a total of US$ 15 million in Bitcoin and Ethereum.
From the $15 million that was raised, 35% was allocated to upgrading the Binance platform and exchange system; 50% was allocated for Binance marketing, branding and education of new innovators; and the remaining 15% was used as a reserve in case of any emergencies or unprecedented circumstances.
Binance coin Burning
As mentioned in the BNB white paper, every quarter, Binance uses 20% of its profit to buy back and burn Binance coins, destroying them completely. BNB has consistently performed quarterly burns, the latest being the 13th quarterly burn on October 17, 2020.
BNB will continue to perform quarterly burns until it buys back and destroys 100 million Binance coins-50% of the total supply. The practice ensures that the supply of Binance remains finite, making it scarce and more valuable.
Binance and Regulation
After BNB began operations in 2017, it grew into one of the largest players in the crypto space. However, regulatory difficulties notably surfaced against BNB in 2021. Binance faced regulatory action from a number of regions in 2021 including the Cayman Islands, Japan, Netherlands, Thailand, Malta, the united kingdom and Malaysia.
The UK Financial Conduct Authority, for example, ordered BNB to cease all U.K regulations operations. In July 2021 because it lacked the necessary authorization, registration or license. Similarly, Malaysian authorities responded by filing a criminal complaint against BNB for operating as an unauthorized virtual asset service provider (VASP) the following month.
Is BNB banned in the united States? Prior to its 2021 headwinds, Binance announced the removal of US customers from its main exchange in 2019, although Binance opened a platform compatible with U.S. users in the same year, called BNB U.S.
In response to increased regulatory scrutiny, BNB has stated that it intends to open additional offices throughout the world and seek licenses in each jurisdiction where it operates. BNB is also beefing up its compliance and resources, as well as phasing out or restricting a number of high-risk items.
FAQs
What is the Binance Coin?
Binance coin is a cryptocurrency that is used primvoarily to pay transaction and trading fees on the Binance exchange.
What is the price of Binance coin in 2022?
By the end of 2022, the Binance coin is forecasted to stand around a maximum value of $313.03.
Is BNB a good investment in 2022?
Binance can be a great investment in 2022 for all long term investors. Remember, it’s a highly volatile cryptocurrency that can help you to maximize your profits in a short time, but at the same time, you can also a lot of money. So, analyze the market carefully and make your decision wisely according to your financial needs and goals.
Why Binance is the best exchange?
Currently BNB is the most popular exchange around. But what make it so popular? There are three reasons for this.
- Low Fees
- A good safety record
- They are the Biggest
What is the use of Binance Coin?
Beyond the Binance exchange, Binance coin has several uses, including the ability to:
- Buy virtual gifts
- Donate to charity
- Process payments
- Make investments
- Make loans and transfers
Hope this article has helped you to clearly understand Binance Coin