What is Binance Coin?
What is Binance Coin?
Binance Coin(BNB) is the cryptocurrency of the Binance exchange. The Cryptocurrency trades with the symbol BNB and runs on the Ethereum Blockchain although there are talks about having the BNB on Binance’s proprietary chain, Binance Chain. Binance Coin runs on the ERC 20 standards and has a maximum limit of 200 million BNB tokens.
What You Need to Know About Binance Coin
The Binance Coin is projected to serve as the means of exchange on the Binance platform fueling all the operations carried out in the Binance space. This means that all transactions on the platform would be carried out using BNB. So, exchange fees, listing fees, trading fees, and all other fees paid in Binance Coins.
Currently, there exists a 50% discount on trades carried out using BNB. This discount offer is due to the first-year launch and would reduce by half every year. This means that by the second year, the discount becomes 25% and 12.5% by the third year and by the fifth year, the discount offer comes to an end.
Binance Coins can also be used to invest in initial coin offerings available on the Binance’s Launchpad program. In the program, new cryptocurrencies list on the Binance exchange optimizing the use of Binance as a marketplace for trading in new and already popular digital tokens.
BNB has enjoyed a lot of support from even outside through several partnerships. This has helped to further spread and encourage the use of Binance Coin. These partnerships include a partnership with Uplive, a major live streaming platform in Asia. Uplive also sells virtual gifts to its user base which is about 20 million for BNB tokens. The web platform and mobile app of Uplive also support Binance Coin making it very easy to use for subscribers of Uplive. BNB is also supported by the VISA debit card of Monaco as the pioneer cryptocurrency platform.
Apart from the external support received by Binance Coin, the cryptocurrency still has a repurchase plan. The repurchase plan allows users to use 20% of their profits to buy BNB tokens. Once about 50% of the BNB tokens are bought back, only 100 million BNB tokens would be left in circulation. This mechanism is designed to help BNB retain an appreciable value with time.
As of April 2018, Binance announced that 2,220,314 BNB (about $30 million) tokens had been removed from existence in the burn process. Continuous coin burns with an increasing burn percentage in line with scheduled arrangements show the profitability of the Binance exchange.
The BNB was officially launched in an initial coin offering (ICO) in July 2017. At the time, 10% of the total BNB tokens went to angel investors, 40% of the total BNB tokens went to the founding team and the remaining 50% went to the several participants of the ICO process.
Half of all the funds raised from the ICO process was to be used in the branding and marketing of Binance, while one-third of the earning was to be used in building the Binance digital platform and perform all necessary upgrades to the Binance ecosystem.
As of April 2018, BNB had a market cap of about $1.4 billion. Currently, BNB does not offer a direct exchange to regular currencies. To achieve this, you might have to convert first to other crypto-coins, for instance, BTC, to convert your BNB to regular currencies. It is expected that Binance Coin would eventually become the native currency of the decentralized Binance exchange.
Benefits of Binance Coin
Some benefit of the Binance Coin that you might want to consider include;
• Discount on trading fees
As earlier mentioned, BNB offers a 50% discount on trading fees which is slashed by half each year.
• The Convenience of Paying Platform fees
All fees on the platform can be settled using BNB.
• Trading pair
Due to the enormous support enjoyed by BNB, it has over 42 trading pairs on Binance.
Since 20% of the profits made from BNB are used to buyback and burn. This means a limited supply of BNB tokens in the future. This makes BNB a profitable investment in the long run.
There are several cryptocurrencies already in existence and newer ones are emerging by the day. Considering the way cryptos work, it has been shown that the early investors are often the ones that enjoy the most profit from these cryptos. This is why crypto enthusiasts need to pay attention to these emerging cryptocurrencies. Especially for peculiar coins like the Binance Coin that are likely to be exclusive to a platform in the future. Several predictions and charts already list BNB as one of the strong new cryptos around.