Since its creation, the Binance coin has caused massive waves in the cryptocurrency world. If you are new to the Binance (BNB) world, don’t worry. Here is everything you need to know about the coin.
Binance coin was launched during an Initial Coin Offering (ICO) in July 2017. It had a maximum of 200 million BNB tokens.
During the ICO, the tokens were distributed to various parties.
- 40% (80 million BNB tokens)- Founding team
- 10% (20 million BNB tokens)- Angel investors
- 50% (50 million BNB tokens)- public sale at 15 cents per token.
Binance raised $15 million from this ICO in bitcoin (BTC) and Ethereum (ETH). The $15 million that was raised was divided and allocated to various uses, including:
- 50%- set aside for Binance marketing, branding, and education of new investors.
- 35%- This value was used to upgrade the Binance cryptocurrency exchange system.
- 15% is set aside for unprecedented emergencies.
Initially, the Binance coin ran on the Ethereum blockchain abiding by the ERC-20 standard. However, the Binance coin is currently a native of the Bitcoin exchange platform.
What is Binance Coin?
Binance coin is a cryptocurrency created by Binance exchange and trades. The symbol of the coin is BNB, which has many purposes, including paying exchange fees, trading fees, and listing fees. As of Q2, 2022, Binance was pronounced the largest cryptocurrency exchange platform in the world, with a volume of assets of more than $6.88 billion.
How Does Binance Work?
Like any other crypto, Binance rises and falls in value. You can buy BNB from the Binance crypto exchange platform. In 2019, Binance launched its blockchain called Binance Chain (BC). The BNB coin later became the native coin of Binance after the launch of BC. Following all these events, there was a swap of the BNB ERC-20 tokens for the new BNB coin.
During the ICO launch of Binance in 2017, Binance committed to removing 100 million BNB tokens (50% of its total supply) from circulation through a process called burning. Every quarter year, Binance uses a fifth of its profits to repurchase and ‘burn’ the BNBs. This burning process ensures that BNB remains rare and valuable. The latest burn, which was the 19th burn, came on April 20, 2022. Binance turned in a total of 1,839,786.26 BNB tokens. These tokens are equivalent to $741,840,738.874.
Uses of BNB
Binance coin has a lot of uses across a range of different platforms, not just gaming sites. Some additional uses are:
- Trading — On cryptocurrency exchange platforms, including Binance.
- Making Investments — Some cryptocurrency exchange platforms like Binance allow users to invest in stocks and other assets using BNB.
- Credit card payments — On cypto.com, BNB pays bills using a crypto credit card.
- Pay transaction fees — BNB can pay trading, listing, and exchange fees on the Binance exchange platform.
- Paying for travels — You can make travel arrangements on some websites using BNB, including flights and hotels.
- Entertainment purposes — BNB is used to buy lottery tickets on some gaming websites and virtual gifts for your loved ones.
Binance Legality and Regulation
The Binance crypto exchange has quickly grown to become the most significant global crypto exchange platform. However, different countries have mixed receptions. For example, China has banned all cryptocurrency activities, the nationality of Changpeng Zhao, the founder of Binance.
In other countries like the USA, it is not illegal to use Binance. However, Binance Holdings is under progressing investigations by the Internal Revenue Service and the Justice Department on accusations of money laundering and tax evasions.
On top of that, in the United Kingdom and Japan, the respective governments have warned Binance about operating without the required permissions.
Is Binance secure and trustworthy?
Yes, Binance has enhanced security and protection features that help keep your funds. Additionally, the exchange platform uses a secure Assets Fund for Users (SAFU) and a multi-cluster and multi-tier system framework for protection.
How much do I pay as a BNB transaction fee?
If you are trading the Binance Coin from the Binance exchange platform, the standard transaction rate is 0.1% of the trading volume. You will also receive a 50% discount on Binance if you use BNB tokens.
Is it a good idea to invest in Binance Coin?
Any crypto investments are volatile. The unpredictable rising and falling of the value of these coins make it a challenging investment option. However, reading about the coin and understanding how it operates before deciding is essential.