Binance Coin (BNB) is a cryptocurrency that may be used for trading and commission payments on the Binance cryptocurrency exchange. As of January 2018, the Binance Exchange is the largest cryptocurrency exchange in the world, processing more than 1.4 million transactions every second.
As an incentive, Binance Coin users get a break on transaction costs on the Binance Exchange. Forother cryptocurrencies like Bitcoin, Ethereum, Litecoin, and others, BNB can also be traded or swapped as altcoin latest news today.
The ERC-20 token used when Binance Coin was first developed in July 2017 was first operated on the Ethereum blockchain before it was adopted as the native currency of Binance’s blockchain, the Binance Chain.
The Ethereum blockchain network struggled with traffic congestion in 2021, which resulted in asharp increase in gas prices for transactions. The blockchain’s sluggish performance caused developers to run into transactional problems.
Because of the BNB Beacon Chain’s quick transaction processing and reasonable gas prices, theyconsequently made the switch. The BNB Beacon Chain was used more frequently, and the BNB coinbecame more well-known and surfaced in Binance coin news today.
Since then, Binance has become more than just an exchange for digital assets; BNB is still a crucial component of the Binance ecosystem.
Benefits of Binance Coin
The Binance Coin has several purposes outside of the Binance exchange, just like other developing cryptocurrencies, including
- Trading: Depending on the limitations imposed by the exchange, Binance Coin may be traded on a variety of exchanges for other cryptocurrencies.
- Transaction costs on the Binance Exchange: Users can use BNB to pay for transactions on the Binance Exchange and earn a discount.
- Credit card payments: On Crypto.com, BNB is a possible method of payment for cryptocurrency credit card bills.
- Payment processing: By allowing BNB as a payment option, merchants provide their
customers greater flexibility.
- Booking travel: On some websites, BNB can be used to reserve hotels and flights.
- Entertainment: The application of BNB in the entertainment industry ranges from buying lottery tickets to paying for virtual goods.
- Investment: To use Binance Coin, investors or traders can invest in stocks, ETFs, and otherassets on several platforms.
- Loans and transfers: BNB may be used as collateral for loans on some sites. Additionally,some apps let users pay friends and family and split bills using Binance Coin.
For its Binance crypto card, which functions like a debit card, Binance has teamed up with VISA.To make purchases, you must load BNB currency onto the card (wherever VISA cards areaccepted).
A BNB Burning
As stated in the Binance whitepaper, 20% of quarterly profits are used by Binance to buy back anddestroy all of its Binance Coins. Quarterly burns have been consistently carried out by Binance; the most recent was the 13th quarterly burn on October 17, 2020.
Once it has acquired and destroyed 100 million Binance coins, or 50% of the supply, Binance will keep performing quarterly burns. Because of this practice, Binance Coin’s supply will always belimited, increasing its scarcity and value.
Initial Coin Offering: Binance Coin
A token sale for Binance Coin took place in July 2017 (ICO). BNB tokens were given out to the severalparticipants during the ICO, including angel investors and the Binance founding team.
The initial distribution of BNB tokens was broken down as follows:
- 40% of the founding team (80 million BNB)
- 10% are angel investors (20 million BNB)
- Public auction: 50% (100 million BNB)
The 100 million BNB coins that were made available for general purchase were all purchased duringthe ICO for 15 cents each as per altcoin latest news today. Binance was able to raise a total of $15million in bitcoin and Ethereum as a result.
The $15 million that was raised was divided as follows: 35% went toward upgrading the Binance platform and exchange system; 50% went toward branding, marketing, and the training of newinnovators; and the final 15% was set aside as a reserve in case of emergencies or exceptionalcircumstances.
Is BNB a Good Investment Given Its Price Prediction for Binance Coin?
Binance Coin has 200 million tokens available when it first launched. With a maximum supply of 200million BNB coins, there are now just under 160 million coins in circulation. Due to Binance’s token-burning policy, the current coin collection is lower than the initial supply.
BNB coin was offered for purchase at $0.15 during the ICO and is now worth $334.92 as of the timeof writing. The fourth-largest cryptocurrency in the world by market cap, BNB coin has a value ofmore than $50 billion.
CoinMarketCap BNB’s price has experienced a maximum drawdown of 51% from May 10, 2021,when the all-time high of $690.93 was achieved. BNB’s price has experienced a maximumdrawdown of 51% from May 10, 2021, when the all-time high of $690.93 was achieved. On October6, 2022, there was a hack on the BNB Chain, and the hacker made off with $110 million. The BNBcoin is a high-risk, high-reward investment stated by Binance coin news today.