What is Binance Coin (BNB)?
Binance coin, better known by its abbreviation BNB, is currently fourth.
The largest cryptocurrency by market cap.
Created by arguably the largest cryptocurrency exchange,
Binance, this coin mostly serves to give holders some
benefits compared to the rest of the exchange user. It can be
use to pay fees on binance exchange, with slightly lower
the commission compared to the one you would have paid if you had not used BNB.
Binance is continuously trying to expand the usable sphere of this coin
to attract investors, and this has paid off many times over for them so far.
It is important to note that if there are any problems such as
such as binance insolvency or bankruptcy (similar to FTX exchange),
The BNB would completely lose the need for existence, and therefore
to draw that by investing in this coin you are relying on success
Binance exchange business. If we take all of the above
we will see that BNB has become an integral part of Binance’s
ecosystems and will be necessary for the survival and further development of this current
the dominant crypto exchanges.
Source: Cointelegraph
Binance coin: Initial coin offering
Binance coin was launched in 2017. with an offer of $200 million.
Coins. By creating the coin, part of the offer was assigned to the Binance team, part of the
it was sold to early investors, and the rest was put up for public sale
(public sale), at a price of fifteen cents per BNB. He’s here
A brief overview of how BNB coins were distributed:
- Binance team: 40% (eighty million BNB)
- Angel investors: 10% (ten million BNB)
- Public sale: 50% (one hundred million BNB)
Binance raised a total of 15 million from the sale of BNB.
dollars in bitcoin and ethereum. Of this amount, 35% is allocated to
improving binance exchange, 50% for marketing and education, and
the remaining 15% is saved in reserve in case of any
unexpected circumstances.
Source: Cointelegraph
Binance Network (eng. Binance chain)
BNB was originally launched on the Ethereum network, but subsequently became
the most important coin of the BNB network given that it is used for payment
fee for conducting transactions on this network. Similar to Ethereum,
Binance has launched its network, which they claim is decentralized and
It can be used to build a variety of decentralized applications, such as
are DeFi (decentralized finance) platforms, buying and selling NFT-
Iowa… However, this is not the most accurate information given that the network
It’s not decentralized, and Binance has full control.
can freeze user funds which is not a characteristic of any
decentralized networks such as Bitcoin and Ethereum.
Source: Cointelegraph
BNB incineration
One of the key links to the success of the BNB in recent years was
is the burning of the BNB supply. Unlike others
cryptocurrencies that have unlimited coin offerings, BNB has
a limited supply of two hundred million coins. It’s a bonus to this
The so-called BNB incineration. Binance committed to burning part of it.
BNB offers every quarter until the total supply is reduced to
one hundred million coins, that is, by 50%. The Burning of the BNB, Binance
forever removes coins from the offer, which will lead to a rise in price,
If the demand remains the same.
Source: Cointelegraph
How does BNB incineration work?
Every three months Binance takes 20% of the profits made to buy
BNB coins. Purchased coins are burned by Binance, i.e. sent to
a non-existent address that no one has access to. As we previously
Stated Binance will carry out the burning of the BNB until 50% of the total
The offer will not be burned.
Source: Cointelegraph
Why did Binance introduce the burning of BNB?
There are several reasons why Binance is carrying out the burning of BNB
coins, but one of the main ones is that it helps to maintain
the value of BNB. Over time, how will the BNB offer
decrease, the demand for it is likely to grow, which will lead to
price increases. In addition, burning the offer helps prevent
inflation, because it ensures that the supply remains the same, that is, that
reduces. Another advantage that the incineration mechanism offers is
Increase investor confidence. The fact that Binance committed to
will use part of the profits to increase the value of their cryptocurrency
it further instills confidence in investors. Certainly the burning of bnb
It is a unique and innovative link that was necessary for his
it will be interesting to see how it develops in
future.
Source: Cointelegraph
Conclusion
Binance’s BNB proved to be one of the best investments in
the previous bull market, and constant additions of the usefulness of the BNB from
Binance’s side could save this coin for another big leap
In the bull market. Binance as the leading crypto exchange
currencies are constantly trying to improve their services and thus attract
new users, which would increase their earnings. In combination with
the mechanism of burning coins, which we mentioned earlier,
this is likely to lead to a rise in the price of BNB. It is important to note
that the value of the BNB is directly related to binance’s operations,
and if there are any problems in the business (similar to FTX-
in) this coin would probably become worthless. If you decide to
investing in BNB, you can always do it through our
Kriptomata. Write to us on our social networks (Twitter,
Instagram) your experience with Binance exchange and their
a coin. Do you think Binance will remain the dominant exchange office,
or will a competitor emerge to take over the place?
