Binance Coin (BNB) current price is $6.473 with a marketcap of $934.41 M. Its price is 0.38% up in last 24 hours.
- Binance Coin (BNB)
- Live Price $6.473
24h % 0.38%
- Market Cap$934.41 M
- Volume$37.40 M
- Available Supply144.44 M BNB
More Info About Coin
Binance is one of the most popular cryptocurrency exchanges as of 2018. Since its launch, it has attracted millions of users who sign up to use the exchange. But what most people don’t know is that Binance has its token called the Binance coin (BNB) which was released from the ICO.
The coin functions not only as a tradable pair but also in the exchange process itself. The coin is slowly rising because of the benefits for its users. BNB is now rated among the top 30 cryptocurrencies. But what is the purpose of this coin? And how was it created? In this article, we are going to answer these fundamental questions that traders ought to know before signing up to the exchange.
What is Binance Coin?
It is an ERC20 token used on the Binance platform. The total supply of this coin is after 200 million BNB. From there, no more coins will be created. Traders can use their Binance coins to pay for their fees on the Binance exchange. And what’s even more compelling is that you are offered an incentive to pay the fee in BNB. During your first year using BNB, you are given a discount of 50% although it will decrease as the years of membership go by.
The History of BNB
The BNB coin is built on Ethereum network. This means that it uses rules set down for Ethereum blockchain hence users have a guarantee of stability and safety. Traders don’t have to worry about their coins being stolen because the Ethereum protects the Binance coin.
It was introduced to act as a blockchain which will facilitate transferring and trading of blockchain assets. The reason it was created was to decentralize the exchange so traders can have better experience. When you have a decentralized currency, it will be easy for you to do the exchange without depending on the centralised system. CZ’s approach, the owner of Binance, made purchases on the exchange to be easy. In future, Binance will use the BNB token as one of their key based assets.
Purpose and use case of BNB
Why most people are reluctant to use the Binance coin is because it is not a currency, it's a token. But even so, this should not be a determining factor. Since it is a token used on the Binance platform, it serves a very critical purpose. You can use your Binance coins to pay for any fee that includes listing fees, withdraw fees, exchange fees among others. If you have or are still using Binance you are aware of the transaction fee that is usually charged.
But when using the BNB, you can stop paying for those transaction fees. How? Whenever you are using the coin, Binance will rebate the trading fee for the first five years. So the first it the rebates will be 50% and as the years go on the discount is reduced by half. Apart from the payment fee, you can also use the Binance token to invest in some ICOs participating in Binance’s Launchpad program.
Who is Behind the Binance Coin?
The Binance Coin is a project of the Binance exchange. Binance is a Chinese company based in Hong Kong. The team is headed by Changpeng Zhao (CZ) who is the CEO of Binance. CZ is the co-founder and CTO of the OKCoin also another popular Cryptocurrency.
His company, the Beiji Technology, owns and carry out operations of Binance. Shortly after the launch of the Binance exchange, Yi He also one of the co-founders of the OKcoin joined the team. Yi He is a valuable asset to the company as she has the skills of growing technology products and gaining user adoptions. Together with the Binance team, these two have grown the company to be one of the most popular exchange companies in the world.
Benefits of BNB
Persons who frequently trade on Binance platform while holding the BNB token are the ones who benefit most. Because apart from the discounts they get, the coin also allows them to utilize the exchange without having to buy the native coin. The coin also has a huge potential for growth since it is of thriving exchange. But most importantly, the surety and safety are guaranteed when using the BNB. Another added advantage is that Uplive platform supports BNB which makes it possible for users to buy virtual gifts.
There is a reason why Binance exchange token attracts many traders since it was first created. It is fast, reasonably priced and available all over the world. Although it has faced its share of complaints and criticism, it remains to be on top of the list because of the fantastic customer service and support.
Of course, the success of the BNB project is based on the success of Binance, but if you are a frequent trader on Binance then the Binance Coin is a no-brainer. You will be able to receive discounts on transactions fees and don’t forget that the coin stands a chance to gain more utility and value as the time goes by. And chances are, it will be because it is backed by an actual business. BNB is a very tempting investment but remember to do your own research first.
Pros & Cons
|Offers 50% fee discount on the Binance exchange||None|
|As the Binance exchange grows, the token grows with it, so there is a huge potential for growth|
|Each quarter Binace buys back some of its tokens and burn them and they will do this until its total supply will be caped at 100 million tokens|
BCrypto Investment Tip
Binance Coin isn't a cryptocurrency like the others, it is simply a token used on the Binance exchange. It's main use is to reduce fees on their platform and provide a better user experience. I believe this token still has a lot of room for growth so does the exchange itself. Binance is just a little over one year old so it's still very new in the crypto space and it will grow much more than it has already and the Binace Coin will grow with it.