A cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange
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What is Binance Coin (BNB)?
Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. The Binance Exchange is the largest cryptocurrency exchange in the world as of January 2018, facilitating more than 1.4 million transactions per second.
Users of Binance Coin receive a discount in transaction fees on the Binance Exchange as an incentive. BNB can also be exchanged or traded 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 token ERC-20 before it became the native currency of Binance’s own blockchain, the Binance Chain.
Uses of Binance Coin
Just like other evolving cryptocurrencies, the Binance Coin offers several uses that go beyond the Binance exchange, such as
- Trading: Binance Coin can be traded for other cryptocurrencies on various exchanges, depending on the restrictions set by the exchange.
- Transaction fees on the Binance Exchange: BNB can be used to pay for transactions on the Binance Exchange, and users also receive a discount for doing so.
- Credit card payments: BNB can be the form of payment for crypto credit card bills on Crypto.com.
- Payment processing: Merchants can offer BNB as a means of payment for customers, offering more flexibility in payment methods.
- Booking travel arrangements: BNB can be used to book hotels and flights on select websites.
- Entertainment: From paying for virtual gifts to buying lottery tickets, BNB serves several purposes in the entertainment space.
- Investment: Several platforms allow investors to invest in stocks, ETFs, and other assets using Binance Coin.
- Loans and transfers: BNB can be used as collateral for loans on certain platforms. Also, there are apps that allow users to split bills and pay friends and family through Binance Coin.
Binance Coin: Initial Coin Offering
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 angel investors and the Binance founding team.
Here’s a brief breakdown of how BNB tokens were initially distributed:
- Founding team: 40% (80 million BNB)
- Angel investors: 10% (20 million BNB)
- Public sale: 50% (100 million BNB)
All of the 100 million BNB tokens available for public sale were sold during the ICO at 15 cents per token. Therefore, Binance raised a total of US$15 million in bitcoin and ethereum.
From the $15 million that was raised, 35% was allocated to upgrading the Binance platform and exchange system; 50% was allocated for Binance branding, marketing, and education of new innovators; and the remaining 15% was used as a reserve in case of any emergencies or unprecedented circ*mstances.
BNB Burning
As mentioned in the Binance whitepaper, every quarter, Binance uses 20% of its profits to buy back and burn Binance Coins, destroying them completely. Binance has consistently performed quarterly burns, the latest being the 13th quarterly burn on October 17, 2020.
Binance will continue to perform quarterly burns until it buys back and destroys 100 million Binance coins – 50% of the total supply. The practice ensures that the supply of Binance Coin remains finite, making it scarce and more valuable.
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FAQs
Binance coin (BNB) is the exchange token of the Binance crypto exchange. It was launched originally on the Ethereum blockchain but later migrated to the Binance Smart Chain, now called BNB Chain.
Is BNB a Binance Coin? ›
Binance coin (BNB) is the exchange token of the Binance crypto exchange. It was launched originally on the Ethereum blockchain but later migrated to the Binance Smart Chain, now called BNB Chain.
Can BNB reach $10,000? ›
Will Binance Coin Reach $10,000? It's difficult to determine what any asset's price will be in the future. There are too many factors that affect prices. However, it is possible that BNB will reach $10,000; however, it is just as likely to fall to zero.
Is Binance BNB safe? ›
BNB's tale is one of security and trust. With the launch of the BNB Safe Wallet, a fortress of digital security, BNB ensured that its holders' assets were shielded by the Gnosis Safe Protocol, a bulwark against the sophisticated threats of the cryptosphere.
How much is 1 BNB on Binance? ›
The live price of BNB is $ 704.72 per (BNB / USD) with a current market cap of $ 103.84B USD. 24-hour trading volume is $ 2.74B USD. BNB to USD price is updated in real-time. BNB is +0.66% in the last 24 hours with a circulating supply of 147.35M.
What is the symbol for the Binance coin? ›
Binance coin is the crypto-coin issued by the binance exchange and trades with a BNB symbol.
What is the name of the Binance coin? ›
BNB is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. BNB is also the cryptocurrency coin that powers the BNB Chain ecosystem.
Where will BNB be in 5 years? ›
BNB (BNB) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 756.45 |
| 2026 | $ 794.28 |
| 2027 | $ 833.99 |
| 2030 | $ 965.45 |
1 more rowLong-term Binance Coin price prediction for 2025, 2026, 2027, 2028, 2029 and 2030. Based on the historical price movements of Binance Coin and the BTC halving cycles, the yearly low Binance Coin price prediction for 2025 is estimated at $ 706.67.
Which crypto will boom in 2024? ›
Which crypto will boom in 2024? Cryptos that could boom in 2024 include SingularityNET and Fetch.ai, both of which may capitalize on AI's popularity. Bitcoin is another crypto that could be poised for a strong performance in 2024, thanks to the SEC's approval of Bitcoin ETFs.
Is BNB a profitable investment? Yes, BNB is a profitable investment for the long term.
Is Binance still trustworthy? ›
Is Binance Exchange Safe? Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.
Is it risky to invest in Binance? ›
Is Binance Safe? The bottom line is that Binance is a very safe crypto exchange (with some caveats). It keeps the vast majority of its crypto in “cold wallets” that are not connected to the internet. This limits losses in case of a hack and makes it unlikely that an attack will cause Binance to become insolvent.
Which coin is best to invest now? ›
Here are six of the best cryptocurrencies to buy now:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Avalanche (AVAX)
- Polygon (MATIC)
- Cardano (ADA)
USD to BUSD
| Amount | Today at 2:19 pm |
|---|
| 1 USD | 1.00 BUSD |
| 5 USD | 5.00 BUSD |
| 10 USD | 10.00 BUSD |
| 50 USD | 49.99 BUSD |
4 more rowsBitcoin and ethereum dominate the global cryptocurrency market cap in the top two spots. Beyond them, BNB, solana and XRP jostle for position among the top 10 cryptos.
Is BSC and Binance the same? ›
Binance BNB is Binance cryptocurrency, while Binance smart chain (BSC) is the blockchain network on which BNB and a few other cryptocurrencies/tokens are built.
What network is BNB on Binance? ›
BNB is also powering the Binance Smart Chain, which is an EVM-compatible network, forked from “go-ethereum”. It supports smart contracts and relies on a new consensus mechanism: Proof-of-Staked Authority (PoSA) consensus (“Parlia”), which incorporates elements from both Proof of Stake and Proof of Authority.
What does BNB stand for in Binance? ›
Moreover, BNB chain transactions are fueled by a blockchain gas token called BNB, which stands for "Build and Build" (previously known as Binance Coin).
Does Binance sell BNB? ›
Binance is a centralized exchange where you can buy several cryptocurrencies including BNB.
