Concept
The Binance chain’s native coin, Binance coin was initially a version of the Ethereum blockchain’s ERC 20 standard. It had a strict cap of 200 million BNB tokens when it was released during an initial coin offering (ICO) in July 2017. Through the ICO process, it distributed 10%, or 20 million BNB tokens, to angel investors, 40%, or 80 million tokens, to the founding team, and the remaining 50%, or 100 million tokens, to the various participants.
Introduction
The cryptocurrency known as Binance Coin, which trades under the sign BNB, is a product of the Binance exchange. With a $7.6 billion trading volume as of Q2 2022, Binance Exchange is the biggest cryptocurrency exchange globally.
Uses and Support
In 2017, Binance was established as a utility token for reduced trading fees. However, since then, its applications have grown to include countless ones across numerous platforms. It’s employed to cover transaction costs on Binance.com, Binance DEX, and Binance Chain.
Additionally, it can be used to make payments (at locations like Crypto.com, Monetha, and HTC), to make hotel reservations (at locations like TravelbyBit, Trip.io, and Travala.com), to enjoy yourself (with virtual gifts, card packs, and lotteries), to pay for online services (BitTorrent, Canva, and Storm), and even for financial transactions.
Some ICOs that are listed through Binance’s Launchpad programme can be purchased using Binance tokens. The Binance exchange lists new cryptocurrencies, and it serves as a convenient trading platform for a number of well-known and emerging virtual tokens.
Other partnerships’ backing for the cryptocurrency token has aided in the currency’s adoption. It includes a partnership with Uplive, the top live video streaming service in Asia, which offers virtual gifts to Uplive’s 20 million users in exchange for BNB tokens.
The platform, mobile app, and VISA debit card of Monaco, the industry-leading payments and cryptocurrency platform, all support Binance coin.
Binance Coin Burning
Despite the fact that 100 million Binance tokens were initially made available during the ICO, the current supply is less. In order to permanently destroy the Binance coins it has in its treasury, or “burn,” one-fifth of quarterly revenues are used by Binance to repurchase them.
These burning incidents have been periodically carried out by Binance. On April 15, 2021, Binance burned 1,099,888 BNB in total, amounting to $595,314,380 in USD value of tokens. This was the most recent BNB burn. It is the highest quarterly BNB burn Binance has ever experienced in terms of money. BNB is now available in a total supply of 169,432,937 as opposed to 170,532,825 before.
Binance: Is it banned in the US?
In the US, Binance is not prohibited. However, according to a May 13, 2021 Bloomberg report, the Internal Revenue Service and Justice Department are looking into Binance Holdings. According to the report, tax and laundering investigators have reportedly questioned people who have knowledge of Binance’s operations.
What Is a BNB Market?
The location where BNB is bought and sold is referred to as the BNB market. On the secondary market, most BNB purchases are made.
BNB can be purchased and sold by traders on Binance.com and other cryptocurrency exchanges.
What Does It Mean to Convert to BNB?
Any quantity of coins or tokens that are so little they are frequently ignored are referred to as “dust” in the cryptocurrency world. They are essentially the minuscule leftovers from trades.
Trades can be converted from dust to BNB on Binance.
What Is the Purpose of the BNB Coin?
Beyond the Binance exchange, Binance Coin can be used for a variety of purposes, such as:
- Donate to charity
- Make loans and transfers
- Make investments
- Process payments
- Buy virtual gifts
- Pay for travel arrangements (on select websites)
- Make credit card payments
Takeaways
- Only Bitcoin, Ethereum, and USD Tether have larger market caps than Binance, which had a market worth of more than $56 billion at the time of writing.
- In 2017, Binance was developed as a utility token for reduced trading fees, but since then, its usage have grown to include paying transaction fees (on the Binance Chain), booking trips, enjoying entertainment, using internet services, and accessing financial services.
- In order to permanently destroy the Binance coins it has in its treasury, or “burn,” one-fifth of quarterly revenues are used by Binance to repurchase them.
- Although BNB is currently the native currency of Binance’s own blockchain, the Binance chain, it was originally built on the Ethereum network.
- The cryptocurrency known as Binance Coin, which trades under the sign BNB, was created by the Binance exchange.
