Binance Coin – The Biggest Exchange’s Offspring

Maja Mazur
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Made as a utility token for trading on Binance, turned out to be so much more. Powering the biggest cryptocurrency exchange in the world, Binance Coin is holding great potential.

Binance’s baby

Every cryptotrader in the world has definitely heard about the Binance exchange. It’s on top of many rankings, with the highest daily transaction volume of all crypto trading platforms. But maybe not everyone knows that Binance has actually created its own cryptocurrency.

The ICO

Binance Coin (BNB) had its launch in July 2017. It started as an ICO (Initial Coin Offering) on 14th of July and has been gaining popularity ever since. From the initial amount of 200 million BNB, half was available to purchase during the ICO. 80 million were bought by developers and by the founders of the exchange itself, and the remaining 20 million to advisors. The average price of BNB during the ICO, was around 0.11 USD.

It had been established that every quarter of the year, the founders of Binance will allocate 20% of the profits for BNB purchase. Then, the tokens will be destroyed, in order to decrease the number of supply. These actions will stop once 100 million of the initial 200 million have been bought and destroyed.

Binance chain

Initially, BNB was based on the Ethereum blockchain but eventually, Binance decided to launch its own structure. The launch of the Binance chain was announced in December 2018. It will enable detaching from the Ethereum blockchain and becoming a more independent creation.

The use of BNB

Binance Coin has many forms of utility but above all, it powers the Binance ecosystem. Apart from it, BNB is used by traders to pay transactions fees on the exchange. Using Binance Coin entitles the traders to obtain a significant discount on trades during the first years of existing on the market:

  • 1st year: 50%
  • 2nd year: 25%
  • 3rd year: 12.5%
  • 4th year: 6.75%
  • 5th year: no discount

BNB is also commonly used to buy virtual gifts online.

The numbers

At the beginning, for about 3 months, Binance Coin was worth just over 1 USD. Then, the price begun to rapidly grow, to reach the impressive over 24 USD in January 2018. After that hot period, BNB remained at a stable level of over a dozen USD for almost the whole of 2018. Currently, it’s worth 9,23 USD.

ABOUT

  • Binance Coin is a cryptocurrency created by the founders of Binance exchange
  • It powers the Binance ecosystem and it’s used for fee payments
  • BNB entitles the traders to obtain a discount while trading on Binance
  • The official ticker symbol for Binance Coin: BNB
  • Market capitalization: 1,314,904,524 USD
  • Maximum token supply: 200,000,000 BNB
  • Circulating supply: 141,175,490 BNB
  • Daily trading volume: 94,222,176 USD
  • Binance Coin was the first cryptocurrency created by an exchange

EXCHANGES

You can find BNB on these exchange platforms:

Image from https://coinmarketcap.com


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