Binance Coin is a cryptocurrency in a Binance exchange that is traded under the name BNB. In June 2021, Binance became the largest cryptocurrency exchange in the world, handling more than 1.4 million transactions per second. But what is BNB, and how does it work?
What is Binance Coin BNB
BNB was based on the Ethereum blockchain and followed the ERC20 standard but later became the primary Binance chain token. The token was released at an ICO in 2017 and is available in 200 million units. 10% of it was considered angel investors, 40% for the founding team, and the remaining 50% for participating in the ICO process.
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More than half of the funds raised in the ICO process were spent on branding and marketing the token. One-third was also earmarked for the development of the Binance platform, and most Binance ecosystem upgrades are currently on the same capital.
The BNB token was first released on the Ethereum network but is now a native coin to the Binance blockchain. The name of this blockchain is the Binance chain.
How does BNB work?
Although more than 100 million Binance tokens were distributed in its initial public offering, its supply is lower. Each quarter, Binance spends one-fifth of its profits on buying and destroying Binance coins, partly to keep supply and demand in the market together.
The last burning for the BNB took place on April 15, 2021, and more than 1 million tokens worth $ 595 million were burned. This was the 15th quarter to burn a certain amount of BNB tokens. Total token supply decreased from 170,532,825 to 169,432,937.
Binance Coin Main features
The BNB was initially used as a token to discount cryptocurrency transactions. But since then, its applications have increased, and most applications, along with other platforms, have used it as a payment method. You can now use it to pay for Binance, Binance Dex, and Binance chain.
BNB is also used as a payment method on various websites, including hotel reservations, entertainment, and shopping websites, online payment services, and some financial purposes.
Other applications include investing in ICOs that are in the Launchpad Binance program. A list of the latest cryptocurrencies that have just entered the market is available on the Binance website, many of which can be traded or swapped using the Binance exchange.
Token Binance has gained some kind of support from other partners, which is used to develop it. For example, the Uplive website sends BNB packages as digital gifts to its customers, more than 20 million.
BNB is also supported by a platform, mobile app, Visa or debit card, and valid payment systems.
What Is the BNB Coin Used For?
There are other applications for BNB that will increase with the growth and development of the Binance platform. These include the following:
- Make credit card payments.
- Pay for travel companies.
- Buy Virtual Gifts
- Payment processing
- Creating loans and transferring funds
- Donate to charity
The Bitcoin approach first released a small number of coins and slowly increased supply using the mining method to reward network members for validating China Blockchain transactions.
You can not mine Binance Coin, and its initial supply entered the market at the beginning of the initial public offering. Now, with Burning algorithms, its amount in turnover is reduced.
Where to buy and sell BNB
You can buy and sell BNB in various cryptocurrency exchanges. The Binance website is the central hub for BNB exchanges.
The primary wallet for the BNB is the Trustwallet tool. This is a non-custodial wallet, and cryptocurrency users keep it directly in their wallets instead of storing it in the blockchain. Each user is required to maintain their password. If this password is lost and you also lose the Secret Phrase, you will not recover your BNB tokens at all.
The BNB token was introduced with ICO in 2017 and initially worked on the Ethereum blockchain, but it is currently the primary exchange token and Binance platform. Binance is the largest digital currency exchange globally, and most of the costs and items payable are done with BNB. BNB is currently priced at $ 592 and has a market cap of $ 98,825,689,550.