What Exactly Is Binance Coin (BNB)?
Binance Coin is the cryptocurrency issued by the Binance exchange, and it trades under the sign BNB. Binance Exchange is the world’s largest cryptocurrency exchange, with over 1.4 million transactions per second as of June 2021.
Binance Coin: An Overview
Binance currency was initially run on the Ethereum blockchain using the ERC 20 standard but has subsequently become the Binance chain’s native token. It was created in July 2017 as part of an initial coin offering (ICO) and has a tight limit of 200 million BNB tokens. It distributed 10%, or 20 million, BNB tokens to angel investors, 40%, or 80 million, tokens to the founding team, and the remaining 50%, or 100 million, tokens to the various participants in the ICO process.
Almost half of the funds raised during the ICO process were planned to be used for Binance branding and marketing, with the remaining one-third utilized to build the Binance platform and update the Binance ecosystem.
BNB was based on the Ethereum network at first but is now the native currency of Binance’s own blockchain, the Binance chain.
Binance Coin Burning
Although the ICO offered 100 million Binance tokens, the current overall supply is lower. Binance spends one-fifth of its profits each quarter to repurchase and permanently destroy, or “burn,” Binance coins stored in its treasury.
Binance has been holding these burning activities on a regular basis. The most recent BNB burn occurred on April 15, 2021, when Binance burned a total of 1,099,888 BNB, which is equivalent to $595,314,380 USD in tokens. Binance’s 15th quarterly BNB burn is the greatest in terms of US dollars. BNB supply has fallen from 170,532,825 to 169,432,937.
Binance Coin Uses and Support
Binance was founded in 2017 as a utility token for reduced trading fees. However, its applications have now grown to include a wide range of platforms and applications. It’s used to cover transaction fees on Binance.com, Binance DEX, and Binance Chain.
It can also be used to make payments (at sites like Crypto.com, Monetha, and HTC); to book travel accommodations (at sites like TravelbyBit, Trip.io, and Travala.com); for entertainment (virtual gifts, card packs, lotteries); to pay for online services (BitTorrent, Canva, Storm); and even for financial transactions (take out a loan at ETHLend or make investments at Moeda).
Binance coins can also be used to invest in some ICOs listed on Binance’s Launchpad program. New cryptocurrencies are listed on the Binance exchange, and using Binance enables a seamless marketplace for trading in a wide range of established and emerging virtual tokens.
The crypto coin has received backing from additional collaborations, which has aided in its adoption. It includes a collaboration with Uplive, Asia’s premier high-end live video streaming platform, in which virtual presents are sold for BNB tokens to Uplive’s 20 million-strong user base.
Binance coin is also supported by Monaco, the pioneering payments and cryptocurrency platform, as well as its platform, mobile app, and VISA debit card.
Frequently Asked Question of Binance Coin
What Exactly Is the BNB Coin?
BNB Coin is a cryptocurrency that is primarily used on the Binance exchange to pay transaction and trading fees.
What Is the Purpose of the BNB Coin?
Binance Coin has various applications outside of the Binance exchange, including the ability to:
- Pay with a credit card
- Make travel plans (on select websites)
- Purchase virtual presents
- Payments are processed.
- Make an investment.
- Make loan and transfer arrangements.
- Make a charitable contribution
What Does It Mean to Convert to BNB?
Dust is a term used in the cryptocurrency sector to describe any amount of coins or tokens that are so little that they are typically overlooked. They are essentially the minuscule fractions leftover from trades.
Binance allows traders to exchange their dust for BNB.
What Exactly Is a BNB Market?
The BNB market is simply the location where BNB is bought and sold. The majority of BNB purchases are made on the secondary market.
Traders can purchase and sell BNB on Binance.com and other cryptocurrency exchanges.
Is Binance Banned in the United States?
Binance is not prohibited in the United States. On May 13, 2021, however, Bloomberg reported that Binance Holdings is being investigated by the Justice Department and the Internal Revenue Service. According to the article, laundering and tax investigators have questioned individuals with knowledge of Binance’s operations.
“We take our legal obligations extremely seriously and work collaboratively with authorities and law enforcement,” Binance spokeswoman Jessica Jung said. “We have worked hard to develop a strong compliance program that combines anti-money laundering concepts as well as tools used by financial institutions to detect and manage questionable conduct.
Binance is a Cayman Islands-based company.
Read More: What actually is Bitcoin? A complete guide in 2022
