What Is Binance Coin (BNB)?
The Binance Coin (BNB) is a cryptocurrency issued by the Binance Exchange. As of Q2 2022, the Binance Exchange is the largest cryptocurrency exchange in terms of volume, with $7.6 billion in trades.
Understanding Binance Coin (BNB)
The Binance coin (BNB) was originally established on the Ethereum blockchain with ERC 20 standard. However, it has since become the native cryptocurrency of the Binance chain. It was launched during an initial coin offering (ICO) in July 2017 and there is a maximum amount of 200 million tokens that can be issued. Of these 200 million BNB tokens: 10%, or 20 million, were offered to angel investors; 40%, or 80 million were given to the founding team; while remaining 50%, 100 millon were available to participants throught he ICO process.
Nearly 50% of the money gathered during the ICO campaign was set to be used for Binance branding and marketing, with about one-third going towards developing the Binance platform and making necessary improvements to the Binance ecosystem.
BNB was initially an ERC20 token but has since moved to Binance’s own blockchain.
Binance Coin Burning
100 million Binance tokens were offered in the ICO, but the current total supply is lower. Every quarter, Binance destroys a portion of its profits to repurchase and permanently destroy Binance coins held in its treasury; this process is called “burning.”
Binance Burning events occur regularly, with the most recent on April 15th, 2021. A total of 1,099,888 BNB was burned then- worth $595,314,380 USD in U.S. value., It is now Binance’s 15th quarterly burn and to date; their largest one yet measured in U.S currency terms. With this burning event,, the total supply of BNB has decreased from 170 532 825 to 169 432 937.
Binance Coin Uses and Support
Binance was created in 2017 as a utility token to get discounted trading fees. But since then, it has become useful for numerous applications on different platforms. For example, you can use Binance to pay transaction fees on Binance.com, Binance DEX, and Binance Chain.
Binance coins can be used for a variety of things, such as:
- Payments (at Crypto.com, Monetha, HTC)
- To book travel accommodations (TravelbyBit, Trip.io, Travala.com)
- For entertainment purposes(virtual gifts + card packs + lotteries)
- To pay for online services (BitTorrents at Canva and StormX) And even for financial purposes! – Take out a loan at ETHLend or make investments through Moeda).
The Binance exchange offers a growing list of cryptocurrency options and provides an easy-to-use marketplace for trading virtual tokens.
The crypto token has received support from various partnerships, helping it become more popular. For example, it has a partnership with Asia’s premier high-end live video streaming platform, Uplive, where users can buy virtual gifts for BNB tokens. Additionally, Binance coin is supported by the Monaco platform–which includes a mobile app and VISA debit card–allowing users to make payments and trade cryptocurrencies.
Binance Smart Chain
On May 14, 2021, the Binance Smart Chain saw a record number of almost 12 million transactions in one day. This is significantly higher than Ethereum’s all-time high of 3.7 daily transactions and is evidence that Binance Smart Chain is becoming increasingly popular.