What is Binance Coin (BNB)?

Binance Coin (BNB) is the official cryptocurrency of Binance Chain. First released to the market via ICO in July 2017.

Initially, the BNB coin was built on Blockchain of Ethereum according to the ERC-20 standard.

On April 24, 2019, Binance officially completed the Binance Chain Mainnet and started supporting the conversion of BNB running on Ethereum to BNB running on their own platform.

Learn more about the Binance Coin whitepaper: here.

Basic information about BNB coin:

Binance Development Team:

Binance is a Chinese company, originally founded in Shanghai and now headquartered in Malta. Its founder, Changpeng Zhao, is a former CTO of OKCoin, another popular Chinese cryptocurrency exchange. Zhao’s company, Beiji Technology, owns and operates Binance.

In August 2017, shortly after the launch, Binance announced that Yi He would be joining the team. Yi He is one of the original co-founders of OKCoin. She is widely recognized for her ability to develop technology products and gain user acceptance. Zhao, He and the Binance team have grown the company into one of the largest exchanges in the world in a fairly short period of time.

Token Allocation BNB:

With an initial fixed total supply of 200 million BNB, the Binance development team distributed it in three parts with the following ratio:

• 50% is marketed via ICO.
• 40% is held by the Binance development team.
• 10% for Angel Investors.

Token Sale BNB:

Binance sold 50% of BNB to raise a total of $15 million from the ICO over 3 phrases.

According to the Whitepaper, the BNB token sale event, which started on July 1, 2017 and ended on July 21, 2017, went through three rounds in the form of first come first serve.

With the selling price will increase after each round, specifically as shown below:

Token Release BNB:

Here is how Binance disburses BNB for each portion:

• ICOs: Not locked. Investors receive BNB 5 days after the end of the ICO.
• Angel Investors: Not locked. Get enough BNB after the end of ICO.
• Binance Team: The amount of BNB held by the Binance team will be paid within 5 years from the end of the ICO. Pay 20% each time (16,000,000 BNB).

Binance Ecosystem

According to the Binance Whitepaper, BNB was born with the aim of developing its own ecosystem on the Binance exchange.

Binance Exchange

BNB is used to reduce trading fees (maker & taker) on Binance exchange. Specifically:

In addition, Binance also tiers for VIP accounts to enjoy preferential transaction fees in Binance’s trading services.

Binance Chain

BNB is used to pay transaction fees on the Binance Chain network. This fee is currently quite cheap, only 0.04% of BNB value.

Currently, to issue assets on the platform of Binance Chain, developers will be charged a fee of 500 BNB.

Binance DEX

Projects that want to be listed on the floor Binance DEX need to send 1000 BNB with the listing proposal.

If the project is approved, this 1000 BNB will be returned to the project. Otherwise, the project will lose this amount. This is a condition to avoid spam for Binance DEX.

However, the listing amount for each project is not announced by Binance and the proceeds from the listing will be 100% donated to the Binance Charity platform as of October 8, 2018.

When approved to list on Binance DEX, the project needs to send 1000 BNB listing fee to Binance DEX.

Binance Launchpad

Investors need to hold BNB to have the opportunity to invest in potential projects through Binance Launchpad.

And once there is an investment rate, investors can only use BNB to buy tokens of projects.

Binance Charity

BNB is used to donate to charity programs through Binance’s Binance Charity platform.

Payments

In addition to the Binance ecosystem, BNB is also used to pay as a currency at stores and partners that accept BNB payments.

Currently, BNB is used for payment and used for many different purposes such as:

• Use BNB to buy air tickets, book hotels through TravelbyBit.
• Use BNB to borrow money from Nexo.
• Use BNB to pay for products and services via our XPOS machine Pundi X.
• Use BNB to give virtual gifts via Gifto.

Binance Academy:

A place to provide basic information for those who are new to the Crypto market and join the Binance exchange. (looking for more information: here)

Can BNB be mined or staking?

For Binance Chain, you cannot mine or staking BNB.

Unlike other Blockchains, confirming transactions, creating new blocks on Binance Chain are taken care of by Validators.

These Validators can be individuals or organizations and they will be rewarded with transaction fees.

Although it is not possible to mine, you can wait for batches of BNB to Lending with a fixed profit on the Binance Lending platform.

Binance Coin (BNB) Storage Wallet:

You can store Binance Coin (BNB) on the official wallet issued by Binance – Trust Wallet.

Currently, Trust Wallet is supported on both phones and computers. You can choose the right version for you here: trustwallet.com/en/

Or you can create a Binance Chain wallet directly at Binance DEX. For detailed instructions, please see the article below:

Besides, BNB is supported by many wallets developed by 3rd parties such as:

• Hardware wallet: Ledger Nano X, CoolWalletS
• Application: Coinomi, Exodus, Atomic Wallet…

Binance Coin Exchange (BNB)

Ranked 1st on the chart of market capitalization of CoinGecko, BNB is currently supported for trading on many different large and small exchanges.

With the average total trading volume in the past month reaching more than 30 billion USD, it shows that the liquidity of BNB is currently at a good and stable level.

In which, BNB is traded the most on Binance exchange.

Factors affecting BNB

Exchanges

The first is spot trading. People can see the benefit of reduced fees is not as big of an advantage as it was in 2017.

But, up to the present time (in 2021) the high price of BNB makes the fees from transactions also increase, giving Binance a huge amount of revenue from transactions.

Not only that, Binance also has other trading segments such as Margin Trading, Future Trading (Binance Future) and OTC, etc.

The expansion will increase the revenue and profit of Binance. From there will follow the next consequence – BNB Burn Coin.

Burn Binance Coin (BNB)

According to the whitepaper, Binance will deduct 20% of its revenue to burn BNB until the total supply of BNB is halved, which is 100 million BNB.

Currently, Binance has conducted 14 BNB burns with a total of 29,467,175 BNB burned equivalent to $8,250,809,000 (compared to the current price).

So when the exchange array is expanded, it will increase the demand for BNB and reduce the supply through BNB burns.

Binance Chain

Just over 7 months, since the completion of the Mainnet, about 159 assets have been released on the Binance Chain platform.

This is quite an impressive number for a nascent Blockchain like Binance Chain.

Of which, 63 projects have been listed on Binance DEX with a total trading volume of more than $1.25 million per day.

To release assets requires 500 BNB and to list requires 1000 BNB.

Thus, if the demand for asset issuance on Binance Chain and listing on Binance DEX increases, the demand for BNB will increase.

Another purpose of BNB is to be used as a means of payment. The more stores and partners accept using BNB as a means of payment, the demand for buying and using Binance Coin will increase.

• Note: This article is for informational purposes only about Binance Coin (BNB) at this time and should not be considered investment advice. Investment Cryptocurrency is a form of risky investment, it takes a lot of knowledge and skills to be able to make money from this market. If you are interested in the article please leave a comment below the support team will contact you.

Technical analysis:

BNB is currently having short corrections forming a sideways price zone for the time being. But looking back at the long-term trend, BNB is still in an uptrend, indicating stability before a big wave.

The community on Binance is currently ranked #1 in the world in terms of market capitalization which should also give BNB a potential breakout push in the years to come.

Long term vision: