25 Wednesday November 2020
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Binance Coin

Binance Record Token Burn, bnb, coin, price

Introduction

Binance Coin – BNB is a native coin to the Binance exchange platform. It was launched in China in 2017 by the popular cryptocurrency exchange which is the largest centralized cryptocurrency exchange. 

Despite the launch and the native headquarters of Binance which were in China – a ban from the Chinese government made Binance relocate its servers and headquarters to Japan. However, Binance was again warned from Japan’s Financial Services Authority (JFSA) to shut down its operations, which is why the cryptocurrency exchange again relocated its servers and headquarters to the island of Malta.

As of recently, Binance has launched a decentralized platform for trading crypto assets. Binance Coin – BNB will in this manner provide users with access to advanced features on the new decentralized exchange as well as offer many discounts and special exchange rates.

What Is Binance Coin BNB

Basically, BNB is the token of the Binance network – released during the Binance initial coin offering (ICO). Created as a token of the ERC20 standard, this coin used to work on the Ethereum blockchain. Recently, however, the coin migrated to its own blockchain.

The growing popularity of the Binance exchange along with the Binance Mainnet price have all led Binance Coin – BNB to even greater popularity. Despite the fact that BNB is a Binance exchange token, it is still the same cryptocurrency as Bitcoin or other cryptocurrency assets.

The launch of its own blockchain has given this coin a big push in the back. As the team is continuing to polish the Binance Mainnet (which was launched in April 2019), the coin is continuing to grow.

How Many Binance Coins Are Out There?

The company (Binance) held an initial coin offering (ICO) during the launch when the total supply of tokens was allocated in certain percentages among different entities. In this way:

  • 100 million (50%) of BNB tokens were reserved for the initial coin offering (ICO) project
  • 80 million (40%) of BNB tokens were allocated to the founding team behind BNB
  • 20 million (10%) of BNB tokens were reserved for angel investors

What Are The Benefits Of Binance Coin BNB

Binance Coin has a lot of advantages. Some of the main ones include its:

  • High liquidity – The Binance Coin BNB cryptocurrency is traded in a pair with 400+ other coins. This makes it one of the most liquid coins.
  • Decrease in supply – BNB, just like every other coin, is subject to inflation. The creators took this into account even when BNB was being created along with its white paper. As a result, every three months Binance allocates 20% of its income for the redemption of the BNB coins and their burning. This results in only 100 million BNBs which are planned to remain – or half of the originally issued volume.
  • Usability – As a BNB holder, you can reduce the fees during trading on Binance. All BNB coin holders can open and close transactions on the exchange at a fee that is around 25% lower than the one for other users. This discount will be active for the first four years of Binance’s existence and will be reduced by half each year (starting from 50% the first year).
  • Solid reputation – The founder of Binance, Changpeng Zhao (CZ), is a popular personality in the crypto world with a great reputation. This is one of the most important conditions behind the success and durability of any project.
  • Widespread adoption – BNB can be used to pay for goods on websites which accept it. In the fall of 2018, the Binance team announced that BNB is accepted on more than 150 websites.

Basically, Binance Coin’s main functionality is not limited to peer-to-peer payments. Instead, BNB serves as an integral part of the Binance ecosystem and has unique benefits for its use on the platform.

How To Buy And Store Binance Coin – BNB

Binance Coin was designed to function on the Ethereum blockchain – but was later migrated to another blockchain. This is why any wallet that supported ERC20 tokens was suitable for its storage. The best way to buy Binance Coin is obviously directly from Binance – while the most popular options for BNB storage include MyEtherWallet for smartphones and Mist, the desktop wallet from the Ethereum team.

However, if you have converted your BNB tokens during the BNB Mainnet Swap, you should look for the best BNB wallets which support the new BEP2 standard. 

Aside from this, the Binance Coin can be stored on the Binance exchange itself. Still, it is better to keep only small “stocks” there – mostly because of the possibility of hacks and loss of funds.

The Fee Model Behind Binance Coin – BNB

As we hinted above, there is a unique fee model that distinguishes BNB from other coins.

Basically, Binance uses the BNB token to collect various fees levied for using its platform – for activities such as trading, withdrawing, listing and others.

Since August 2018, the platform charges a trading fee of 0.1% on each trade. However, if the users pay their fees in BNB, they can claim an additional discount on the trading fees.

The Future Of Binance Coin (BNB)

Binance Coin boasts a market cap of more than $3.96 billion as of August 2019. This makes it the seventh largest cryptocurrency and a proud member of the top 10 cryptocurrencies list.

The leadership plans to use 20% of its profits to buy back BNB tokens and burn them – until there are only 100 million BNB tokens remaining. The cryptocurrency, just like many others, has been volatile. However, it is also one of the alternative cryptocurrencies (altcoins) which managed to take the world by storm and rise substantially in a lifespan of only 2 years.

So, if you are thinking of investing in Binance Coin, you should know that along with Binance becoming the largest cryptocurrency exchange by trading volume, BNB has also achieved exponential growth in a short amount of time. Backed by a strong and dedicated team, the platform has been made more secure and efficient.

For the latest news and updates on Binance Coin BNB, tune in to our altcoin news section!

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