What is Binance coin (BNB)? Definition, History, ICO, Uses

Binance Coin (BNB) is a type of cryptocurrency issued by the Binance cryptocurrency exchange. It’s one of the most popular cryptocurrencies in the world, with high value and widespread usage within the Binance ecosystem

In this article, AZcoin will help you learn about the history of its creation, uses, burning mechanism, and how to own a Binance Coin (BNB).

Information about Binance Coin (BNB)

Information about Binance Coin (BNB)
Information about Binance Coin (BNB)

What is Binance Coin (BNB)?

Binance Coin (BNB) is a type of cryptocurrency issued by the Binance cryptocurrency exchange in 2017 through an initial coin offering (ICO). BNB was issued on the Ethereum platform and follows the ERC-20 standard. Since then, BNB has become one of the most popular cryptocurrencies in the world, used for various purposes within the Binance ecosystem.

Who is the founder of Binance Coin (BNB)?

Binance Coin (BNB) was founded by Changpeng Zhao, often referred to as CZ. He is a Canadian entrepreneur and software developer who has worked for technology companies such as Bloomberg and the Tokyo Stock Exchange. In 2017, CZ founded the Binance cryptocurrency exchange, and BNB was created to support the operations of this exchange.

The history of Binance Coin (BNB)

Binance Coin (BNB) was first released in July 2017 through an ICO at a price of 1 BNB equivalent to $0.1 USD. The total amount raised during the ICO was $15 million USD. Since then, BNB has had an impressive journey of development. In 2021, the value of BNB reached an all-time high of $690 USD. This is a remarkable figure and demonstrates the outstanding growth of this cryptocurrency.

Uses of Binance Coin (BNB)

Uses of Binance Coin (BNB)
Uses of Binance Coin (BNB)

Similar to Solana, Binance Coin (BNB) also has various uses within the Binance exchange ecosystem. Specifically, these include:

  • Transaction fees: One of the most significant uses of BNB is to pay transaction fees on the Binance exchange. When trading other cryptocurrencies on Binance, users can choose to pay with BNB to receive a 50% discount on transaction fees.
  • Trading other cryptocurrencies: In addition to paying transaction fees, BNB can also be used to buy and sell other cryptocurrencies such as Bitcoin on the Binance exchange. This helps users save time and costs when converting between different cryptocurrencies.
  • Use in Launchpad projects: Binance has also developed a platform called Launchpad, which allows newly launched projects to raise funds from the community. To participate in projects on Launchpad, users must use BNB to purchase the project’s tokens.
  • Payment in stores: BNB can be used to pay for products or services in stores that accept cryptocurrency payments. This helps expand the usage of BNB from being used solely on the exchange to regular stores.

How does the burning mechanism of Binance Coin (BNB) work

When investors purchase BNB during the ICO, they receive a corresponding type of token for the amount of BNB purchased. Subsequently, 10% of the total amount of these tokens will be burned at the end of each quarter in the first year, and in each subsequent year, the burning rate will gradually decrease. The purpose of burning tokens is to help maintain the value of BNB over time and prevent inflation.

By 2021, the token burning mechanism has been altered, and Binance will burn a quantity of tokens equivalent to 20% of its profits at the end of each quarter. This helps to increase the value of BNB and supports investment in this cryptocurrency.

Binance Coin (BNB) Technical Specifications

Binance Coin (BNB) Technical Specifications
Binance Coin (BNB) Technical Specifications

Key Metrics BNB

  • Ticker: BNB
  • Blockchain: Binance Chain, Binance Smart Chain
  • Consensus: Tendermint
  • Token Type: Utility
  • Block Processing Time: 1 second
  • Initial Supply: 200,000,000 BNB
  • Total Supply: 170,532,785 BNB
  • Circulating Supply: 153,432,897 BNB

BNB Allocation

The total number of BNB coins issued in the ecosystem is 200 million, and they are allocated as follows:

  • 20 million coins (equivalent to 10%) are allocated to Angel investors.
  • 80 million coins (40%) are reserved for the founding and executive team.
  • 100 million coins (equivalent to 50%) are allocated for the ICO.

How to Earn and Own Binance Coin (BNB)

There are several ways to earn and own a Binance Coin (BNB), including:

  • Buying from exchanges: You can buy BNB on the best cryptocurrency exchanges such as Binance, Huobi, Okex, BitMax, etc. You need to create an account on these exchanges and have sufficient funds to purchase BNB.
  • Participating in Binance reward programs: Binance regularly organizes reward programs for users. Those who have accounts on the exchange and complete designated tasks will receive BNB as a reward.
  • Receiving free tokens from Binance Launchpad: If you participate in projects on Launchpad, you will receive free tokens corresponding to the amount of BNB you have invested in.
  • Using the Binance Visa Card: Binance has also issued a Visa card that allows you to spend BNB and other cryptocurrencies in daily life. By using this card, you can earn BNB rewards.

Where to store BNB coins?

Where to store BNB coins?
Where to store BNB coins?

Users can store BNB coins in cold wallets such as Ledger and Safepal, or in hot wallets like Metamask and Trust Wallet. They can also store BNB coins on the Binance exchange to participate in staking on Binance Earn and receive passive income.

Is Binance Coin (BNB) a good investment?

Binance Coin (BNB) is a cryptocurrency with numerous applications and high potential for future development. Therefore, it could be a good investment in the coming time. However, as with any investment, you need to conduct a thorough evaluation process and research carefully before deciding to invest in Binance Coin (BNB).

The end

Above is some basic information about Binance Coin (BNB), a popular and reputable cryptocurrency in the current market. Hope that this article has provided you with an overview of this digital currency. Thank you for reading this article, and don’t forget to visit AZcoin to stay updated with new knowledge!

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