Binance Coin (BNB) is a cryptocurrency that may be used on the Binance cryptocurrency exchange to trade and pay fees. As of January 2018, the Binance Exchange was the world's largest cryptocurrency exchange, conducting over 1.4 million transactions every second.
As an incentive, Binance Coin users enjoy a reduction on transaction costs on the Binance Exchange. Other cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and others, can be exchanged or traded for BNB.
Binance Coin was launched in July 2017 and worked with the ERC-20 token on the Ethereum blockchain before becoming the native currency of Binance's own blockchain, the Binance Chain.
Binance Coin's Applications
The Binance Coin, like other developing cryptocurrencies, has a variety of applications outside of the Binance exchange, including:
Trading: Binance Coin can be traded for other cryptocurrencies on a variety of exchanges, according to the exchange's limits.
Binance Exchange transaction fees: BNB can be used to pay for Binance Exchange transactions, and users receive a discount for doing so.
Payments by credit card: On Crypto.com, BNB can be used to pay for crypto credit card bills.
Payment processing: Merchants can accept BNB as a form of payment, giving customers more options in terms of payment methods.
Booking travel arrangements: On certain websites, BNB can be used to book hotels and flights.
BNB is used for a variety of purposes in the entertainment industry, from paying for virtual gifts to purchasing lottery tickets.
Binance Coin may be used to invest in stocks, ETFs, and other assets on a variety of platforms.
Loans and transfers: On some sites, BNB can be used as collateral for loans.
There are also apps that allow users to use Binance Coin to split expenses and pay friends and relatives.
Initial Coin Offering (ICO) of Binance Coin
Binance Coin was created in July 2017 with an initial coin offering (ICO). BNB tokens were dispersed among various participants, including angel investors and the Binance founding team, as part of the ICO.
Here's a quick rundown of how BNB tokens were distributed at first:
40% of the founding team (80 million BNB)
10% for angel investors (20 million BNB)
50 percent off in the public auction (100 million BNB)
During the ICO, all 100 million BNB tokens available for public sale were sold for 15 cents each. Binance raised a total of $15 million in bitcoin and ethereum as a result.
Burning BNB
Binance spends 20% of its revenues each quarter to purchase back and burn Binance Coins, totally eliminating them, as stated in the whitepaper. Binance has continuously done quarterly burns, the most recent being on October 17, 2020, which was the 13th quarterly burn.
Binance will continue to burn currencies every quarter until it has purchased and destroyed 100 million Binance tokens, or half of the total supply. The process ensures that Binance Coin's supply remains limited, making it rare and precious.
Image Sources:
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