Binance Coin is a digital currency issued by the Binance exchange and traded under the symbol BNB.
The BNB coin was originally based on the Ethereum network, but now the main currency of Binance’s own blockchain is BinanceChain.
Every three months, Binance spends a fifth of its profits to redeem and permanently destroy or “burn” the Binance coins in its vault.
Binance was created as a utility token to reduce transaction fees in 2017, but its uses have expanded to numerous applications including payment for transactions (on the Binance chain), travel booking, entertainment, online services, and financial services.
At the time of writing, Binance has a market cap of over $56 billion, second only to Bitcoin, Ethereum, and USD Tether in terms of market capitalization.
Let’s check out together:
- What is Binance Coin?
- The biggest cryptocurrencies
- Binance digital currency token burning
- Binance digital currency applications and support
- Binance Smart Chain
- BNB FAQ
What is Binance Coin?
Binance Coin was initially run on the Ethereum blockchain with the ERC 20 standard, but since then it has become the main coin of the Binance chain.
The coin was launched in an initial coin offering (ICO) in July 2017, and its BNB token cap is set at 200 million to be precise. Through the initial coin offering process, the exchange offered 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 to various participants.
About half of the capital raised during the ICO process was earmarked for Binance branding and marketing, while about a third was used to build the Binance platform and implement necessary updates to the Binance ecosystem.
The BNB currency was originally based on the Ethereum network, but now it has become the main currency of Binance’s own blockchain, BinanceChain.
The biggest cryptocurrencies
As of August 2021, BNB has become the fourth largest cryptocurrency by market capitalization after Bitcoin, Ethereum, and TetherUSD.
Binance digital currency token burning
Although 100 million Binance tokens were initially offered in the coin’s IPO, the current total supply is less than that figure. Every quarter, Binance uses a fifth of its profits to redeem and permanently destroy or “burn” the Binance coins in its vault.
Binance has held these token burning events regularly. in a BNB token burn occurred on April 15, 2021, Binance burned a total of 1,099,888 BNB tokens worth $595,314,380. This event was Binance’s 15th quarterly BNB token burn event and the largest in terms of dollar value. Thus, the total supply of BNB has decreased from 170,532,825 to 169,432,937.
Binance digital currency applications and support
Binance was created as a utility token to reduce transaction fees in 2017. But since then the applications have expanded to numerous applications on a wide range of different platforms.
This currency is used to pay transaction fees on Binance.com, Binance DEX and Binance Chain
This cryptocurrency can also be used to pay money (at places like Crypto.com, Monetha, and HTC), book travel accommodations (at sites like TravelbyBit, Trip.io, and Travala.com), for entertainment purposes (virtual gifts, card packs, lotteries), pay for online services (BitTorrent, Canva, Storm), and even for financial purposes (like getting a loan from ETHLend or investing in Moeda).
Binance Coins can also be used to invest in certain ICOs registered through the Binance Launchpad program. Registering new digital currencies on the Binance exchange and using Binance provides an integrated marketplace for trading new and well-known virtual tokens.
The cryptocurrency token has received support from other commercial partnerships that have helped expand its use.
These business partnerships include a partnership with leading Asian live video streaming platform Uplive, which offers Uplive’s 20 million user base the ability to purchase virtual gifts using BNB tokens.
Binance Coin is also supported by the platform, mobile app and debit card VISA Monaco, the pioneer platform in the field of payments and digital currencies.
Binance Smart Chain
As of June 24, 2021, the number of transactions processed by the Binance smart chain reached 3.7 million transactions per day, which is three times the highest daily transaction volume of Ethereum since its inception, but represents a decrease from the network’s record of 12 million daily transactions, which was recorded on May 14, 2021.
BNB FAQ
In this section we will check out some of frequently asked questions on BNB
What is BNB digital currency?
BNB currency is a digital currency that is mainly used to pay transaction fees and trades on the Binance exchange.
What are the uses of BNB digital currency?
In addition to its use in the Binance exchange, Binance Coin has several other uses, including its ability to be used for:
- Make credit card payments
- Paying for travel arrangements (on selected websites)
- Buying virtual gifts
- Payment processing
- investment
- Obtaining loans and transferring money
- Donating money to charity
What does converting to BNB mean?
In the world of digital currencies, the term dust refers to any very small amount of coins or tokens that are often overlooked. These amounts are basically small fractions left over from transactions.
Binance exchange allows traders to convert their dust into BNB.
What is the BNB market?
BNB market simply refers to a place where BNB coins are bought and sold. Most BNB purchases are made in secondary markets.
Traders can buy and sell BNB coins on Binance.com as well as other cryptocurrency platforms.
Is Binance banned in the US?
Binance is not banned in the United States, however on May 13, 2021, Bloomberg reported that Binance Holdings was under investigation by the Department of Justice and the Internal Revenue Service. According to the report, money laundering and tax investigators are investigating people who have information about Binance’s business.
Binance spokeswoman Jessica Jung said: “We take our legal obligations very seriously and engage cooperatively with regulatory agencies and law enforcement. We have worked hard to create a robust compliance program that incorporates anti-money laundering principles and tools that financial institutions use to identify and address suspicious activity.”
Binance is registered in the Cayman Islands.