What is Binance Coin? (BNB)

Binance Coin BNB

Binance Coin is a cryptocurrency (token) issued independently by Binance, one of the world’s largest cryptocurrency exchanges based in Malta, and used within the Binance exchange.

As of May 2021, it ranks third in the market capitalization rankings, beating out many other virtual currencies with various functions.

Name Binance Coin
Symbol BNB
Current price (May 2021) $376.96
Market Cap (May 2021) $57,837,540,403
Date of Launch July 2017
Max Supply 170,532,785 BNB
Official Site https://www.binance.org/en

Features of Binance Coin

Two main features of Binance Coin

  • There are advantages to using it on the exchange Binance
  • Regular burns (incineration) are conducted

There are advantages to using it on the exchange Binance.

Binance Coin is a virtual currency (token) produced by Binance, a major exchange, and has the following advantages when used on Binance.

  • Discounted transaction fees
  • The ability to exchange money

First of all, Binance’s original commission rate is relatively low at 0.1%, but if you use Binance Coin to pay, you will receive a further discount on the commission rate.

Also, when you use an exchange, you may sometimes be left with a small amount of cryptocurrency, but Binance allows you to exchange small amounts of coins of “0.001 BTC or less” into Binance Coins.

Regular burns are conducted.

A burn is the act of the operator disposing of a portion of the cryptocurrency.

The advantage of disposing of a portion of the currency to reduce the total amount is that it can increase the scarcity value.

The maximum number of Binance coins to be issued is 200 million, all of which have already been issued.

Each quarter, Binance burns 20% of the operating profit from the previous quarter. The higher the operating profit, the faster the burn, and the faster the scarcity value of Binance coins will increase.

In the end, the number of coins will be reduced by half to 100 million.

The Future of BNB (BINANCE Coin)

Since BNB will be a cryptocurrency issued by BINANCE, it will be heavily influenced by BINANCE.

BINANCE is one of the largest and most popular exchanges in the world. Although it started in China, where cryptocurrency is highly regulated, it is currently based in Malta, so there is no need to worry about regulation by the Chinese government.

In addition, BINANCE is actively expanding globally, and in 2019 it has formed a partnership with Paxful, which is known as a “P2P-focused exchange.

The currencies handled, types of transactions, and services available are constantly being updated, and it is no exaggeration to say that it is the most promising exchange in the world today.

Because of these factors, we can expect the value of BNB to continue to rise.

Copied title and URL