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What is BNB ?
- BNB (Binance Coin) is a currency that Binance exchange issues and uses for transactions represented by the BNB symbol. As of June 2023 Binance exchange holds the title of being the cryptocurrency exchange globally with a market capitalization of approximately 8.3 billion dollars.
- Initially BNB was built on the Ethereum network; however it now operates on its blockchain called the Binance Smart Chain (BSC). Every quarter Binance allocates 20% of its profits to repurchase and permanently eliminate BNB coins held in its treasury a process referred to as “burning.”
- Originally established in 2017 as a token for discounted trading fees the utilization of BNB has expanded to encompass applications such as transaction fees on the Binance Chain, travel bookings, entertainment services, online platforms and financial services.
- At present the market capitalization of BNB exceeds 56 billion dollars. Ranks fourth in terms of market capitalization when compared to Bitcoin, Ethereum and USDT. By May 31st 2023 it had gained this position following Bitcoins lead along, with Ethereum and USDT.
Understanding BNB (Binance Coin)
- BNB (Binance Coin) initially existed as an ERC 20 token on the Ethereum blockchain. It has now evolved into the main cryptocurrency of the Binance Smart Chain. It was introduced during the Initial Coin Offering (ICO) in July 2017 with a total supply of 200 million BNB tokens. The ICO distributed tokens to participants, including angel investors (10% or 20 million BNB) the founding team (40% or 80 million tokens) and other participants through the ICO process (50% or 100 million tokens).
- During the ICO phase around half of the funds raised were allocated for branding and marketing efforts for Binance while one third was dedicated to developing the Binance platform and strengthening its ecosystem.
- In its stages BNB operated on Ethereums network but now serves as the primary digital currency powering transactions on the Binance Smart Chain.
- The coin plays a role in promoting Binances exchange services and ensuring smooth operation within its ecosystem. It supports functions such as covering trading fees, exchange fees, listing fees and any other applicable charges on the Binance exchange. Thanks, to partnerships it has forged along its journey BNB has experienced widespread adoption.
|153,853,730 BNB *
History of BNB (Binance Coin)
- It would be quite challenging to discuss the history of Binance Coin without considering the history of Binance Exchange. Binance Coin was introduced in July 2017 through an ICO, where BNB tokens were distributed to angel investors the Binance founding team and other participants.
- During the ICO all 100 million available BNB tokens were sold for 15 cents each generating a total of $15 million in Bitcoin and Ethereum.
- Out of the raised funds 35% was allocated to enhancing the Binance platform and exchange system while 50% was dedicated to branding, marketing and supporting innovators. The remaining 15% was set aside as a reserve for any emergencies.
- Initially during its ICO and early stages BNB existed as an ERC 20 token on the Ethereum blockchain. However after the ICO in mid 2017 Binance launched its own cryptocurrency exchange platform.
- In 2019 an important milestone occurred when Binance unveiled its blockchain known as Binance Chain (BC). This marked the transition of BNB into its form. Users exchanged their ERC 20 based BNB tokens, for new BC based coins through a token swap process conducted in 2019.
How does BNB (Binance Coin) work?
- Binance Coin (BNB) is a type of currency within the Binance market that behaves similarly to other cryptocurrencies. Its value fluctuates based on how it is used and traded. People can store BNB in wallets on crypto exchanges and use it for various purposes, including making payments.
- If you’re interested in buying Binance Coin there are ways to do so including using Binances own cryptocurrency exchange. However it’s important to do some research and make sure you comply with any regulations.
- On a level Binance merged its Layer 1 blockchain with the BNB Chain (formerly known as Binance Smart Chain and Binance Chain) to create one consolidated blockchain system.
- When developing the BNB ecosystem Binance designed the blockchain for on chain trading based on their exchange called Binance DEX. The entire ecosystem operates using the BNB token (previously referred to as “Build and Burn”) to facilitate transactions, on the Binance Chain.
- The BNB ecosystem consists of two parts; the BNB BEP 2 Chain and the BNB Smart Chain. The former focuses on governing aspects of the coin allowing holders of BNQ to participate in staking and voting activities.
- The second one is compatible with the Ethereum Virtual Machine (EVM). Acts as the central component, for different sub chains.
Binance Smart Chain
- As of June 24 2021 the Binance Smart Chain processed 3.7 million transactions on a daily basis, which is three times higher than Ethereums peak daily transaction volume. However in November 2021 it experienced a decline. Dropped below the previous record of, around 12 million daily transactions.
Burning BNB (Binance Coin)
- Initially during the ICO Binance offered 100 million tokens. The current supply has been reduced. Binance regularly conducts burning events where they buy and destroy BNB coins from their treasury.
- Binance has consistently carried out these burning events. The recent one took place on April 15 2021 resulting in the burning of a total of 1,099,888 BNB. This amounts to $595,314,380 USD and marks the 15th quarterly burn. It is also the loss, in terms of USD value. As a result of this burn the total supply of BNB decreased from 170,532,825 to 169,432,937 tokens.
Uses and Support of BNB (Binance Coin)
- Introduced initially in 2017 as a token to facilitate discounted trading fees Binance Coin has evolved to have applications across various platforms. It is utilized for paying trading fees on platforms like Binance.com, Binance DEX and the Binance Chain.
- Moreover BNB is also used for making payments on platforms such as Crypto.com, Monetha and HTC. It can be employed for booking travel accommodations through TravalbyBit, Trip.io and Travala.com. Additionally it serves entertainment purposes like gifts, card packs and lotteries. Furthermore it can be utilized for paying for services such as BitTorrent, Canva, Storm. Enough it can even be used for financial purposes like taking loans on ETHLend or investing in Moeda.
- Individuals also have the opportunity to invest in ICOs listed through Binances Launchpad program using Binance Coin. Furthermore a convenient marketplace is provided by Binance Exchange where both established and new virtual tokens can be traded.
- BNB has garnered support from partnerships including ApLive. A major Asian live video streaming platform with, over 20 million users. Which enables the purchase of virtual gifts using BNB tokens.
- Binance Coin is supported across platforms including mobile apps and Monacos Visa debit card. A prominent payment and cryptocurrency platform.
BNB pricing and dynamics
- Binance Coin (BNB) has gone through market fluctuations to other cryptocurrencies that are actively traded. In years BNBs market capitalization has exceeded $70 billion in value. During the coin offering (ICO) of Binance BNB tokens were sold for approximately $0.10 each.
- Since the ICO BNB has experienced trading activity and has reached prices exceeding $600, per coin on multiple occasions. So is investing in Binance Coin a choice? Well if investors can time their entry and exit correctly they may benefit from its price growth. However only time will tell where the price of BNB will go next.
Binance and Regulation
- Since its establishment in 2017 Binance has experienced growth and emerged as a major player in the cryptocurrency industry. However it encountered challenges in several regions during 2021 including the Cayman Islands, Japan, Malta, the Netherlands, Malaysia, the United Kingdom and Thailand.
- For example the Financial Conduct Authority of the United Kingdom instructed Binance to halt all regulated operations in June 2021 due to a lack of required authorizations, registrations or licenses. Similarly Malaysian authorities responded to an alleged complaint against Binance for operating as an unauthorized virtual asset service provider (VASP) in the subsequent month.
- Did Binance face a ban in the United States? Prior to facing adversities in 2021 Binance announced back in 2019 that it would exclude customers from the United States on its exchange. However it later introduced a platform called Binance.US specifically tailored for U.S. Users during that year.
- In response to increasing scrutiny worldwide Binance has expressed its intentions to establish additional offices globally and obtain licenses within each jurisdiction where it operates. Additionally they are actively enhancing their compliance capabilities. Implementing restrictions or prohibitions, on certain high risk assets.
Factors to Consider Before Investing
- Investors have the option to utilize Binance Coins for their participation in initial coin offerings that are listed through Binances Launchpad program.
- Binance Exchange will introduce cryptocurrencies creating a diverse market where individuals can engage with different virtual tokens using Binance Coins.
- The plan is for Binance Coin to become the currency utilized on Binances decentralized exchange.
- Binance Coin has gained support from Monacos Visa debit card, payment and cryptocurrency platforms as well, as a mobile app.
What is BNB (Binance Coin) ?
- Binance Coin serves as a currency primarily utilized to facilitate transactions and cover trading fees, on the Binance Exchange.
What is the use of Binance Coin?
Apart from being used on the Binance Exchange Binance Coin has other practical applications, which include;
- Making payments using credit cards.
- Paying for travel bookings, on websites.
- Purchasing gifts.
- Conducting payment transactions.
- Investing activities.
- Availing loans and transferring funds.
- Contributing to causes.
What does “converting into BNB” mean?
- In the realm of currencies the term “dust” is used to describe minuscule fractions of coins or tokens that are often overlooked due to their small size. These fragments essentially represent remnants, from trading activities.
- Traders using Binance have the option to convert their “dust” into BNB.
What is the BNB market?
- The BNB market is essentially the platform where people buy and sell BNB. The majority of BNB trading occurs on markets.
Is Binance banned in the United States?
- Currently there is no ban imposed on Binance within the United States. However it was reported by Bloomberg on May 13 2021 that both the U.S. Justice Department and Internal Revenue Service are conducting investigations into Binance Holdings. According to the report tax authorities are closely examining individuals who possess knowledge about Binances business operations.
- Jessica Jung, a spokesperson for Binance emphasized their commitment to fulfilling obligations and maintaining open communication with regulators and law enforcement agencies. She stated that they have dedicated efforts towards establishing a compliance program that incorporates anti money laundering principles and utilizes tools employed by financial institutions to identify and address suspicious activities.
- Furthermore it should be noted that Binance has expanded its operations, in the Cayman Islands.