About Binance Coin
The price Binance Coin today is 303.91 USD, and the trading volume in 24 hours - 2,546,866,636 USD. The crypto asset has grown by 1.63% over the day. Currently, the coin’s market capitalization is 51,099,083,985 USD, and has 168,137,036 coins in circulation with the max supply of 64,469,737,786 coins BNB.
What is Binance Coin (BNB)?
Binance Coin or BNB is a cryptocurrency developed and released by the world's leading cryptocurrency exchange Binance. Although Binance is a very popular exchange, the company is looking to expand its operations to include many different services. Binance Coin was created to serve this entire ecosystem.
Binance Coin users receive a transaction discount when paying a commission on Binance Exchange as an incentive. BNB can also be exchanged for other cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc.
Binance Coin was created in July 2017 and initially worked on the Ethereum blockchain with the ERC-20 token, before becoming the currency of its own blockchain - Binance Chain.
Binance Coin Usage
Like other emerging cryptocurrencies, the project offers several use cases that go beyond the Binance exchange, for example:
- Trading: Binance Coin is exchanged for other cryptocurrencies on various exchanges, depending on the restrictions set by the exchange.
- The Commission: BNB can be used to pay for transactions on Binance Exchange, and users also get a discount for this.
- Credit card Payment: BNB can be a form of payment for crypto-credit card bills on Crypto.com.
- Payment Processing: Merchants can offer BNB as a means of payment to customers, providing greater flexibility in payment methods.
- Travel Arrangements: BNB can be used to book hotels and flights on certain websites.
- Entertainment: From paying for virtual gifts to buying lottery tickets, BNB serves several entertainment purposes.
- Investment: Multiple platforms allow investors to invest in stocks, ETFs and other assets using Binance Coin.
- Loans and Transfers: BNB can be used as collateral for lending on certain platforms. In addition, there are apps that allow users to split accounts and pay friends and family via Binance Coin.
Binance Coin: the initial placement of the coins
Binance Coin was launched with an Initial coin offering (ICO) in July 2017. As part of the ICO, BNB tokens were distributed among various participants, including business angels and the Binance founding team.
Here is a brief description of how BNB tokens were initially distributed:
- The team of founders: 40% (80 million BNB)
- Business angels: 10% (20 million BNB)
- Public sale: 50% (100 million BNB)
All 100 million BNB tokens available for public sale were sold during the ICO at 15 cents per token. Thus, the crypto exchange raised a total of $ 15 million in Bitcoin and Ethereum.
Of the $ 15 million raised, 35% was spent on upgrading the Binance platform and exchange system. 50% was allocated to Binance branding, marketing and training of innovators, and the remaining 15% was used as a reserve in case of emergencies or unprecedented circumstances.
As mentioned in the Binance whitepaper, each quarter the crypto exchange uses 20% of its profits to buy back and burn BNB coins, completely destroying them. Binance regularly conducts quarterly flares, the last of which was the 13th quarter, on October 17, 2020.
Binance will continue to perform quarterly flares until it repurchases and destroys 100 million BNB coins - 50% of the total supply. This practice ensures that the Binance Coin supply remains limited, making it scarce and more valuable.
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