What is Binance Coin BNB & Why is it Important?

Based on on-chain data Solana’s social dominance is close to six-month high, another sign of the project’s relevance among traders. Interestingly, the Binance Coin price had a bullish day despite the Beacon https://cryptominer.services/how-to-buy-flow-coin-how-where-to-buy-flow-flow/ Chain retirement announcement. The altcoin made it back up above $250 to trade at $252 at the time of writing and tested $255 as a resistance level for the fifth time in the past month and a half.

Recently, Binance has reached an agreement valued at over $4 billion to drop investigations conducted against it by the U.S. An almost identical deal, again involving Changpeng Zhao, the former CEO of Binance, was concluded according to the latest news. Rahul Nambiampurath started his career as an accountant but has now transitioned into working full-time in the tech space. When he’s not writing, he’s usually busy making wine, tinkering with his android device, or hiking some mountains.

Originally, 200 million BNB were created and some of the coins are burnt by Binance on a quarterly basis. The amount burned is equal to 20% of their quarterly profits, which will go on until the outstanding supply reaches 100,000,000 BNB. Every quarter, Binance burns a portion of its BNB holdings with the eventual goal of cutting the maximum BNB supply from 200 million to 100 million. Since it started as an Ethereum-based ERC-20 token, BNB is not mined, but the entire supply of 200 million was minted at launch.

Binance Coin price poised to go higher

Formerly known as Binance Coin, BNB (which stands for Build and Build) was introduced in 2017 by the cryptocurrency exchange Binance as an ERC-20 token on the Ethereum blockchain. In contrast, fiat currencies https://topbitcoinnews.org/how-to-buy-power-ledger-buy-power-ledger-powr-with/ are often inflationary because central banks can print more money. However, with a limited supply, crypto inflation can be better controlled because the total number of coins is predetermined.

• Since the token is mostly used within the Binance ecosystem, you need a verified account on the exchange to use the currency.
• To combat this depreciation, Binance also destroys BNB tokens over time, reducing the total supply of BNB from 200 million to 100 million.
• Consequently, its price is now in large parts dependent on the success of these underlying blockchains.

Binance Coin was created in 2017 by Binance, which is currently the leading cryptocurrency exchange worldwide. The name ‘Binance’ has a simple origin, it is simply a combination of the words ‘Bitcoin’ and ‘Finance’. BNB had an initial supply of 200 million tokens, with 100 million of the total supply reserved for investors who participated in the ICO. The remaining half was reserved for angel investors and the founding team. The Binance team intends to burn all tokens that were not allocated for the public sale via scheduled and real-time BNB burns (read more about the topic in the “BNB Token Burns” section below).

As of this writing, Binance Coin is available for $343 per coin, a decline of 50% from the all-time high of $690 set earlier in May 2021. This is part of a market-wide slump that has taken place the last few days, and top coins like Ethereum and Bitcoin are also well off their peak prices. The transaction will show „pending payment“ till the buyer makes payment and it indicates that receipt is confirmed. After you’ve received the money, tap “Confirm” to release the crypto to the buyer. The total amount you will receive will be displayed in the top left corner.

Binance Smart Chain

Ethereum is still the largest smart contract platform with 55% of the market share, so it was a good call to pick Ethereum to launch BNB as an ERC-20 token, an Ethereum smart contract standard. Just like private companies go public with an IPO (Initial Public Offering) to attract investors, cryptocurrency companies go with an ICO (Initial Coin Offering) to do the same. With traditional IPO launches, investors gain a stake in a company through stock shares. When you enter the world of cryptocurrencies, you inevitably encounter Binance, the world’s largest crypto exchange. Reporting 28.6 million active users by the end of 2021, Binance is in its own category by market share, handling over 15% of global cryptocurrency traffic. That is, if we exclude the third-ranked crypto exchange, Mandala, with which it shares its liquidity.

Coin burn

Its primary aim is to fuel the exchange operations while providing convenience and affordability to traders and cryptocurrency enthusiasts. Binance is a global cryptocurrency exchange on which more than 380 cryptocurrencies can be traded as of August 2018. It has been the world’s largest cryptocurrency exchange as measured by trading volume since January 2018. Fortunately, Binance has a good business model which incentivizes traders to continue using BNB to pay for their trading fees.

Binance Coin price history and market cap

That said, Binance Coin is well worth a closer look even if you just want to find out what it is. Here’s the full story, including how its „burning“ system works, its price history, market cap, where to buy it, and the latest news around both the Binance exchange and the coin. To help users distinguish between the two blockchains, they use a slightly different logo. Binance Chain uses a white icon over a yellow circle, while Binance Smart Chain uses a yellow icon over a black circle.

Binance Chain vs. Binance Smart Chain

Since the demand for these IEOs is usually quite high, it’s not rare to see some volatility in the price of BNB whenever a new Launchpad IEO is announced. While $15 million is certainly nothing to scoff at, it was still a relatively modest figure compared to some of the more hyped ICOs. In any case, Binance made good use of the funding and built a crypto empire that’s unmatched by any other https://coinbreakingnews.info/blog/what-is-certik-certik-wikipedia/ company in the space. Those who bought BNB at the ICO price and held long-term have also seen extreme gains – in terms of USD value, BNB is up 122x compared to its ICO price. In the Binance ICO, BNB tokens were priced at $0.1 apiece, and Binance managed to raise $15 million in the sale. „It’s not going to change the crypto world,“ said Layah Heilpern, author of ‘Undressing Bitcoin’.

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Nevertheless, the founders of Binance and creators of the Binance Coin decided to let BNB holders participate in the success of Binance. In the world of cryptocurrency, dust refers to any amount of coins or tokens that are so small they’re often ignored. As of August 15, 2023, BNB was the fourth-largest cryptocurrency by market capitalization, behind only Bitcoin, Ethereum, and USD Tether.

The discount rate started at 50% in the first year, but it’s scheduled to be cut in half every year. The secret to Binance’s success and admirability is as a result of its forward-thinking and dedicated team. The team consists of individuals from different worlds of specialized skills with years of experience, coming together to make Binance a project worth boasting about.