What Is a Binance Coin (BNB)?
The Binance exchange’s native cryptocurrency, Binance Coin (BNB) is traded under the ticker symbol. As of the second quarter of 2022, Binance Exchange handled $7.6 billion in cryptocurrency trading volume, making it the largest cryptocurrency exchange in the world.
- The Binance exchange’s native cryptocurrency, Binance Coin (BNB) is denoted by the dollar sign.
- When Binance launched its own blockchain, the Binance chain, it made BNB its native currency. Previously, BNB had been based on the Ethereum network.
- One-fifth of the company’s quarterly earnings are “burned,” or irretrievably destroyed by repurchasing Binance Coins from the Binance treasury.
- Although it was initially developed in 2017 as a utility token for reduced trading fees, Binance has since found widespread adoption for use in a wide variety of other contexts, such as the settlement of transaction fees (on the Binance Chain), the purchase of goods and services on the Binance platform, and the payment of various taxes and fees.
- At the time of writing, Binance’s market cap was over $56 billion, making it the fourth largest cryptocurrency market cap after Bitcoin, Ethereum, and USD Tether.
Understanding Binance Coin (BNB)
Binance Coin was originally an ERC 20 token on the Ethereum blockchain, but it has since transitioned to the native Binance chain. It was released in the course of an ICO in July of 2017 and is strictly capped at 200,000,000 BNB tokens. Token distribution was split as follows: 10% (20,000,000) were given to angel investors; 40% (80,000,000) were given to the founding team; and 50% (100,000,000) were given to the various participants in the ICO.
Approximately one-third of the ICO funds were allocated to the development of the Binance platform and the implementation of necessary upgrades to the Binance ecosystem, while nearly half were intended for Binance branding and marketing.
When Binance launched its own blockchain, the Binance chain, it made BNB its native currency. Previously, BNB had been based on the Ethereum network.
Market capitalization-wise, BNB ranked #5 on May 28, 2022, behind only Bitcoin, Ethereum, USD Tether, and USD Coin.
Binance Coin Burning
Initial coin offering (ICO) numbers pegged the total supply of Binance tokens at 100 million, but that number has since dropped. One-fifth of the company’s quarterly earnings are “burned,” or irretrievably destroyed by repurchasing Binance Coins from the Binance treasury.
Binance has held these burning ceremonies on a regular basis. Binance burned 1,099,888 BNB on April 15, 2021, at a total cost of $595,314,380 USD. This is the largest quarterly BNB burn in terms of U.S. dollars, and it marks Binance’s 15th quarterly BNB burn overall. There are now 169,432,937 BNB available, down from 170,532,825.
Binance Coin Uses and Support
In 2017, Binance was developed as a utility token to facilitate cheaper trades. But since then, its utility has grown to encompass a plethora of fields and mediums. Fees on Binance.com, Binance DEX, and Binance Chain can be paid with this cryptocurrency.
It can be used to buy goods and services (at stores like Crypto.com, Monetha, and HTC), pay for travel (on sites like TravelbyBit, Trip.io, and Travala.com), purchase virtual goods (like card packs and lottery tickets), pay for digital goods and services (like BitTorrent, Canva, and Storm), and even make financial transactions (take out a loan at ETHLend or make investments at Moeda).
One more use for Binance Coins is as an investment vehicle for Initial Coin Offerings (ICOs) featured on the Binance Launchpad. The Binance cryptocurrency exchange is a hub for trading both established and emerging digital currencies.
The crypto token’s increasing adoption can be attributed, in part, to the partnerships it has formed. Among these is a deal with Uplive, Asia’s most popular high-end live video streaming platform, where BNB tokens are exchanged for virtual gifts for Uplive’s 20 million users.
The platform, mobile app, and VISA debit card of Monaco, the first such platform for cryptocurrencies and payments, all accept Binance Coin.
On June 24, 2021, the maximum number of daily transactions processed by the Binance Smart Chain was 3.7 million, which was three times as much as Ethereum’s record high but significantly less than the almost 12 million daily transactions processed on May 14, 2021.
What Is the BNB Coin?
The Binance exchange accepts BNB Coin, a cryptocurrency, as payment for all transaction and trading fees.
What Is the BNB Coin Used for?
Binance Coin can be used for a variety of things apart from the Binance exchange, such as
- Make credit card payments
- Pay for travel arrangements (on select websites)
- Buy virtual gifts
- Process payments
- Make investments
- Make loans and transfers
- Donate to charity
What Does Convert to BNB Mean?
Dust is a term used in the cryptocurrency industry to describe extremely small amounts of coins or tokens. They are the negligible amounts of money that remain after a transaction.
As a trading platform, Binance gives its users the option to exchange dust for BNB.
What Is a BNB Market?
To buy and sell BNB, one must go to the BNB market. The secondary market is where the vast majority of BNB transactions occur.
Binance Coins (BNB) can be bought and sold on the Binance exchange as well as many other cryptocurrency exchanges.
Is Binance Banned in the U.S.?
The U.S. government has not banned Binance. However, Bloomberg reported on May 13, 2021, that the Justice Department and the Internal Revenue Service are investigating Binance Holdings. The report claims that people with knowledge of Binance’s business have been questioned by money-laundering and tax investigators.
Binance’s spokesperson Jessica Jung said, “We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion.” We have put in a lot of time and effort to develop a comprehensive compliance program that uses anti-money laundering principles and the same tools that banks use to spot and deal with fraud.