Binance coin was issued during the ICO in July 2017. The main aim of coin creation was attracting funds to develop the Binance exchange. Firstly, Binance coin (BNB) was an ERC-20 Ethereum token. April 18, 2019, Binance launched its blockchain, and coins were swapped on it.
Binance stands for ‘binary’ and ‘finance’. Binance coin (BNB) is used as an inner currency of Binance exchange and its ecosystem. Binance cryptocurrency exchange has a high level of security and significant processing speed. Creating its digital money allowed the trading platform to occupy one of the leading positions in the digital sphere due to fast transactions and reliable asset storage.
Binance Coin (BNB) is subject to volatility and can participate in exchange for other assets. Let’s find out what exactly is Binance Coin with Changelly!
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Binance Coin (BNB) Value
According to the Binance Coin whitepaper, the exchange uses 20% of its quarterly profit to burn the BNB tokens. It is planned to withdraw 50% of the coins from circulation and leave them at the level of 100 million.
Binance Coin owners have access to certain discounts on transactions within the trading platform, which include conversion and withdrawal fees, listing and other fees. The discount depends on the period of the acquisition of Binance Coin – up to 50% in the first year and twice the decrease in this indicator every next (up to 5 years).
The relevance of the coin is supported by exchange instruments purchased for this digital money. What for the BNB coin was launched?
- Acting as a trading asset;
- Reduce of commission;
- Suitable for paying for goods on sites that accept Binance Coin.
Ups and downs of Binance exchange platform always reflect on the BNB coin price. The distinction of this currency is in its ROI. It is more than 9000%. The ICO duration time was only 15 minutes, and now you can see the success of the concept.
The coin ranks 8th among all cryptocurrencies by market capitalization. The highest price point was not so long ago on Jun 22, 2019. The coin was worth $39.57. All-time low price is $0.096109, which happened to BNB on Aug 01, 2017. Today Binance Coin (BNB) is worth $15.54.
You can check out the price-list formation and more details about the coin on BitcoinWiki.org.
ICO of Binance Coin and Its Development History
The BNB Coin cryptocurrency was released through an ICO held in July 2017. As a result, they raised $15 million. It seems quite a bit against the background of such giants ICOs as EOS or Tron, which earned several billion dollars.
According to open sources, half of the raised funds went to promotion and advertising, 35% went to the development and improvement of the platform, and 15% went to the company’s reserve.
Since Binance Coin is an internal cryptocurrency of a centralized exchange all coins were issued by pre-mining. Their number was 200 million, but in the end, only half should remain – 100 million. The developers decided to distribute the coins as follows:
- 50% to ICO participants;
- 40% – reserved for the company;
- 10% – to investors of venture funds.
Binance Coin (BNB) Blockchain Review
Binance Coin was based on the ERC20 standard and used Ethereum blockchain until Binance own blockchain was created. Binance Chain was launched in April 2019. It is a software system for Binance exchange, Binance Launchpad, and more to come.
Binance Chain allows users to:
- Receive and send BNB tokens, and any other coins available on the exchange;
- Issue new BEP2-tokens on the platform and promote it;
The main feature of Binance Chain is a high performance. The developers try to make transactions within the network as fast as it is possible. Binance Chain uses Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism.
The team posts all the announcements about blockchain on their special page. You can check it out to get further information about Binance Chain.
Binance Coin Burn
Like all coins, the Binance Coin cryptocurrency is subject to inflation, however, the creators took this into account at the stage of creating WhitePaper. According to one of the points of the white paper, every three months, the Binance exchange reduces 20% of its income for the subsequent redemption of coins and their burning.
As a result, only 100 million BNB will remain, i.e. half of the originally issued volume. At the time of writing, the Binance team had such burns of the Binance Coin cryptocurrency:
|Coin Burn||BNB Burned||BNB Price||Approx. USD Value||% of Total Supply|
|1 (Oct 2017)||986,000||$1.52||$1,500,000||0.49%|
|2 (Jan 2018)||1,821,586||$21.96||$40,000,000||0.91%|
|3 (Apr 2018)||2,220,314||$13.52||$30,000,000||1.11%|
|4 (Jul 2018)||2,528,767||$12.93||$32,700,000||1.26%|
|5 (Oct 2018)||1,643,986||$10.34||$17,000,000||0.82%|
|6 (Jan 2019)||1,623,818||$5.83||$9,400,000||0.81%|
|7 (Apr 2019)||829,888||$18.79||$15,600,000||0.41%|
|8 (July 2019)||808,888||$23,800,000||0.43%|
|9 (Oct 2019)||2,061,888||$17,79||$36,700,000||1.10%|
Binance team does not have a proper roadmap, but they share all the news and upcoming developments in their blog. The CEO of Binance, Changpeng Zhao always announce all the Binance novelties in his Twitter.
Binance Coin Latest News
Leading Swiss stock exchange SIX has launched a traded exchange product (ETP) based on Binance Coin.
Amid news Binance Coin with a capitalization of $2.8 billion rose 2.5%.
Initially, ETP will be provided with a $ 20 million BNB token, which is almost a quarter of all crypto assets managed by the company.
BNB is already the eighth cryptocurrency product from fintech firm Amun, presented on SIX. ETP based on the XRP token from Ripple, Bitcoin, Bitcoin Cash, Ethereum and products based on the crypto asset basket – Amun Crypto Basket Index ETP, Amun Bitwise Select 10 Large Cap Crypto Index ETP are also traded on this exchange.
Binance (BNB) Wallets
There is not a significant range of wallets to store BNB token, but let’s explore some of them:
- Ledger Nano S is a hardware cold wallet which allows users to store, transfer, receive, and send a lot of coins including BNB.
- Enjin Wallet is a mobile wallet available for iOS and Android. Enjin wallet is known for its great architecture. It supports BTC, LTC, ETH, and more.
- Trust Wallet was acquired by Binance exchange, so while using this wallet, you don’t need to worry about security.
Where to trade Binance Coin (BNB)?
It’s easy to exchange BNB coin due to a significant number of platforms accepting this cryptocurrency. Moreover, you can buy any coin presented on Binance Exchange for BNB.
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Binance Coin Summary
Binance coin is a great example of an exchange platform inner cryptocurrency, which is among the top ten cryptocurrencies and overtakes successful altcoins.
The Binance Coin cryptocurrency is considered to be one of the most promising coins. Not in vain, because she has her very significant advantages:
- High liquidity. The Binance Coin cryptocurrency is paired with more than 400 coins, making it one of the most liquid coins;
- Declining supply. The quarterly burning of coins, which the Binance team has so far carried out according to the plan, has a positive effect on the price increase of Binance Coin in the long run;
- The ability to reduce commission when trading. BNB coin holders can open and close transactions on the exchange with a commission that is currently 25% lower than for other users;
- Good reputation. The exchange and its founder Changpen Zhao have a very good reputation, and this is one of the important conditions for the success and longevity of any project;
- Ability to use to pay for services. In the fall of 2018, Binance wrote on its blog that the Binance Coin cryptocurrency is accepted at 150 sites.
However, there are also disadvantages:
- A large concentration of coins in the hands of the founders. During the ICO, the organizers left 40% of the coins for themselves, which creates the danger of manipulating the course for the personal goals of the company;
- Few places to buy. The main place where you can buy BNB is the Binance exchange. There are several other platforms that offer Binance Coin, however, there you can buy a coin mainly only for Bitcoin, Ethereum or native exchange tokens.
Evaluating the prospects of the BNB coin, you need to understand that this is the local currency of the exchange of the same name, and you can get the maximum benefit from its use only when you have chosen Binance as your main crypto trading platform. Only in this case is it possible to use the full potential.
Disclaimer: This article about Binance Coin (BNB) should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements.
Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.