Digital cryptocurrencies are the newest evolution in the finance sector. Their decentralized and borderless nature along with worldwide acceptance makes them the utmost efficient investment option. Moreover, the huge wave within the crypto community has even driven inventors and traders to compare their value with that of gold.
If you are new to the crypto space, it is important to acknowledge how far this revolution has come. We may think that the crypto space is at its peak, but constant improvements are going on within, which does not only make cryptocurrency interesting but also everblooming.
Much like the journey that the crypto space have had, Binance has also had a similar journey.
What is Binance?
Binance is a cryptocurrency exchange where you can trade cryptocurrencies. As of January 2018, in terms of trading volume, Binance is the largest cryptocurrency exchange in the world. In 2017, Changpeng Zhao founded a Chinese company called Beijing Technology. Beijing is the holding company of Binance, headquartered in Hong Kong. Changpeng Zhao is a developer who had previously created high-frequency trading software. Source: Wikipedia
What is Binance Coin?
Binance Coin (BNB) was introduced as a native coin for Binance users as a means to pay their trading fees while using the exchange. The coin was first introduced in 2017 and was working on the ETH backed blockchain as token ERC-20.
It has then further developed itself; became Binance’s native currency and now runs on Binance’s blockchain called Binance Chain. Other than being used for trading fees, BNB can also be exchanged for other cryptocurrencies; such as; Bitcoin, Ethereum, etc.
Facts about Binance Coin:
Uses of Binance Coin:
- Trading: Looking at the wider aspect of cryptocurrency, besides being used for trading in other cryptocurrencies, BNB can also be used to buy goods. Binance coin is not only supported by the platform, the mobile app but also by the VISA debit card of Monaco.
BNB is also being used as a payment method on platforms like,
- Blockchain startups such as Pundi X.
- Blockchain payments company Crypto.com.
- Private nightclub MORE. Source: Binance
- Transaction fees on Binance: The Binance Coin (BNB) was introduced in 2017 which would go on to become the native currency of the Binance Exchange. Not only did the coin being a native currency changed the game, but it also came with few other perks. Traders could avail of up to 50% discounts on trading fees while using BNB. The discount percentages however will get reduced every year.
- BNB for Social Media: With the growing popularity of cryptocurrencies, the time for buying groceries with cryptos as a payment option is not far. Similarly, the welcoming sensation that BNB experienced, made them explore a lot more options. You can BNB on crypto-centric social media network Investfeed through API exchange integration.
There are many use cases where people also used Binance Coin as a gift tokens. Such as, on live streaming service Uplive and chat service ADAMANT. There have also been instances where social media influencers, on certain social media platforms, have earned via BNB. Sometimes, you’ll just be amazed at what use cases people can have with BNB.
- Salaries: The Binance exchange has started practices of paying their employees in BNB. Almost 90% of their employees receive a certain amount of their salaries in BNB.
The salaries earned in BNB can be stored in Binance’s wallet or in any other digital crypto wallets, who support BNB tokens.
- BNB as an Altcoin: BNB is not a token for use by the Binance community only. The impressive performance of the coin has made it equivalent to Altcoins. It can also be traded along with coins like Bitcoin, Ethereum etc. from various exchanges that support BNBs.
- 100 million BNB: The total supply of Binance Coin is 200 million. Out of which 100 million has been regulated in the market and 80 million were allocated to the founding members whereas angel investors were given access to the other 20 million.
The Burning is a regular check that Binance performs on its native currency. Much like how BTC blocks are halved, due to its 21 million limit. Binance Coin is burned every year to eventually limit the total number of BNB to 100 million.
The ICO of Binance Coin.
An Initial Coin Offering is a means adopted by new blockchain companies to raise funds for their product development, marketing activities, research & development, infrastructure growth, and other business prospects. The companies issue their own tokens to their investors in return for Bitcoin or Ethereum. These tokens can be used as an investment in a new product, sharing the dividend to the stakeholders, and buying valuable assets. It is commonly known as ICO and shares the same purpose as that of Initial Public Offering (IPO) but the process involved in both the means is entirely different.
As BNB was introduced through ICO, the coins were distributed among various participants. Among the various other participants, Binance founders and Angel investors were also a part of it. Here’s a detailed breakdown of the 200 million BNB coins.
- Founding Team- 40% (80 million)
- Angel Investors- 10% (20 million)
- Public- 50% (100 million)
Out of the 50% allocated for public trading, all 100 million tokens were sold during the ICO at 15 cents per token. All of these lead them to raise a whopping $15 million in Bitcoin and Ethereum.
Binance Coin exhibits all the characteristics of a flourishing asset. The regular BNB Burning activity working towards capping the availability of BNB to a maximum of 100 million has the potential to make BNB a great value resource in the coming future. To buy your own BNB, click here.
Also read: Step-by-Step guide of how to buy your crypto.