Binance Coin (BNB) – The native coin of a leading crypto exchange
What is Binance Coin?
Binance Coin (BNB) is the cryptocurrency of Binance, one of the largest crypto exchanges, that has seen rapid growth since its launch in mid-2017. With approximately $ 6 billion in assets traded daily on the exchange, it is hardly surprising that its native coin also saw a strong price increase after the ICO. By now, Binance Coin (BNB) has risen to the top 10 crypto currencies in terms of market capitalization.
What makes the platform and the associated coin so attractive? The key to Binance’s success has always been the simplicity of its business model. The same goes for the answer, why the coin could be a hot pick.
In this guide you will learn:
- Who are the people behind Binance Coin?
- What are the benefits of Binance Coin?
- How successful is the Binance exchange?
- Where to buy BNB Coins
- Which cryptocurrencies might interest you as well
The people behind Binance Coin (BNB)
The business behind Binance Coin (BNB) is the Chinese company Binance, which was founded in July 2017. The original headquarters of the company have been Shanghai but were later relocated to Malta. The company was founded by Changpeng Zhao, whose company, Beiji Technology, owns and manages Binance.
The founder of Binance, Changpeng Zhao, was formerly CTO of another successful Chinese crypto exchange called OkCoin.
Yi He, one of the original co-founders of the OkCoin exchange, joined the team in August 2017, shortly after the founding of Binance. He is best known for ensuring that technology products grow as fast as possible.
The previous track record
The team has managed to grow the Binance platform in record time. Since its launch in July 2017, it now has a daily trading volume of $ 6 billion and has become one of the leading crypto exchanges.
How the ICO funds are used
An important issue for any successful cryptocurrency project is how it plans to use the funds raised during the ICO phase. The following use of the ICO funds is listed in the whitepaper of the Binance Coin team:
“35% will be used to provide updates to the system, recruit and train new team members, and further development the platform.
50% will be used for branding, marketing, and education to help Binance become popular among investors, and to attract active users to the platform.
15% will be kept in reserve for emergencies or any unexpected situations that may come up.“
Binance Coin at a glance
Type: ER20 Token
Based on: Ethereum
Current value: $ 8.91
Market capitalization: $ 1,257,186,519
Coins in circulation: 141,175,490 BNB
Total coins: 189,175,490 BNB
The function of Binance Coin (BNB)
What is BNB Coin used for? Does it make sense it exists or is it just another cryptocurrency that has been launched on the spur of the moment for short-term gains?
Binance Coin (BNB) is the native currency of the Binance exchange, one of the world’s most popular crypto exchanges. As such, it was developed primarily to trade on the platform. The function of the coin is obvious: As an exchange coin, it is supposed to be used primarily to pay the various Binance fees (for listings, trading, withdrawals, etc.).
As an incentive to adopt the cryptocurrency, those who buy Binance Coin to pay their Binance fees receive a significant discount.
Users benefit from the following discounts:
- Year 1 – 50%
- Year 2 – 25%
- Year 3 – 12.5%
- Year 4 – 6.75%
- Year 5 – no discount
The past price development
As native cryptocurrency of the Binance exchange, the ER20 token based on the Ethereum Network was launched shortly after Binance’s ICO in 2017. Since then, with the increasing popularity of Binance, BNB coin has steadily gained in value.
Here the performance up to today:
In addition to the reduced trading fees, users also benefit from the increase in value of the coin. Until the supply reaches 100 million BNB, the exchange will repurchase and burn 20% of all Binance coins (BNB) each quarter. This way, the price receives an additional boost.
The total number of BNB coins is limited to 200 million BNB, of which 100 million BNB have been distributed during the ICO.
In addition, Binance announced in early 2019 that it will soon be able to purchase crypto by credit card and fiat on the exchange, which also paves the way for more Binance users and thus for an increase in value.
The Binance platform
Since the success of Binance coin (BNB) is significantly linked to the crypto exchange issuing it, it is worth taking a look at the Binance platform itself.
Binance in numbers
Trading volume per day: $ 6 billion in assets
Trading volume per user: $ 2,137
Number of users: 313,000
Coins offered: 400+
This is why Binance is so popular
Binance is a Chinese crypto exchange that targets not only the Asian market, but crypto users around the world. The exchange was founded in mid-2017. Since then, Binance has risen to become one of the largest cryptocurrency exchanges in the world with 313,000 users trading approximately $ 6 billion in crypto assets per day.
At first, it was only possible to buy crypto with other cryptocurrencies on the exchange. In the near future, however, customers will also be able to buy crypto with fiat and credit card. Since Binance is one of the biggest crypto exchanges, traders can buy all the popular cryptocurrencies (e.g. Bitcoin, Ripple, Litecoin, Ethereum, etc.) on the platform. Binance also regularly lists new coins and as it is an Asian company, you can also find many cryptos that enjoy great popularity on the Asian market.
If a user intends to sell crypto, the exchange will match him with a suitable buyer who agrees with the requested price. The matching engine used for this task can easily handle 1.4 billion trades per second, making Binance the fastest exchange on the market. Add to that the low trading fees and the well-chosen ICO listings. No wonder, then, that the Binance crypto exchange enjoys such an immense popularity, which will only increase with the new payment options.
Binance Coin can be bought on the following exchanges:
- Binance – Our clear recommendation!
- Bancor Network
- Kyber Network
- Trade Satoshi
- EtherDelta (ForkDelta)
These coins could interest you as well:
You are interested in exchange coins, but aren’t sure in which one you want to invest, yet? Here are some alternatives to Binance coin (BNB), you can take a closer look at for a potential investment: