What is Binance Coin (BNB)?

Binance coin (BNB) is a cryptocurrency created by Binance in 2017, one of the largest cryptocurrency exchanges in the world. Binance had its Initial Coin Offering (ICO) of BNB Tokens in 2017 where the price of each token was USD 0.115. The total supply was limited to 200 million BNB tokens. Binance operates on the Ethereum blockchain, which is a decentralized platform that enables smart contracts. BNB was migrated over to Binance Chain in February 2019 and became the native coin of the Binance Chain.

The main benefit of BNB to investors is that it offers low transaction fees, making it a popular choice among professional traders. Holders of BNB with Binance accounts can access discounted fees on the exchange. That means demand for the token is linked to demand for the exchange’s services. Therefore, buying BNB can be seen as a bet on the success of the exchange, in a similar way to buying a share in a company, except that owning the token comes with no ownership rights in the exchange.

Binance coin (BNB) has quickly become one of the top cryptocurrencies in the market. The currency’s versatility has positioned it as an excellent investment option in the market, especially for those seeking an alternative investment other than the traditional stock market. The high demand for BNB within the crypto market has also contributed to the currency’s growth. Binance has established partnerships and collaborations with various businesses all aimed at ensuring that it offers its clients a highly efficient platform.

The founders of Binance coin (BNB) are Changpeng Zhao and He Yi. Changpeng Zhao is a blockchain specialist with deep experience in the crypto market. Zhao was the former CTO of OKcoin, which was the largest digital currency exchange in China. He Yi has extensive experience working in the finance sector with more than ten years of experience in financial management and product development. Together, Zhao and He Yi have been responsible for the growth of Binance, contributing to the success of the Binance Coin (BNB).

Resources

White paper

Official website

Binance (BNB) blockchain explorer

How does BNB work?

BNB has multiple use cases within the Binance platform, providing various benefits to its holders. Here’s how BNB works:

1. Token Function: BNB was initially launched as an ERC-20 token on the Ethereum blockchain. However, with the launch of Binance Chain, BNB migrated to become the native cryptocurrency of the Binance Chain. BNB serves as a utility token and offers various functionalities within the Binance ecosystem.

2. Trading Fee Discounts: One of the primary uses of BNB is to pay for trading fees on the Binance exchange. Binance offers discounts to users who choose to pay their trading fees using BNB. In the early years, the discount rate was higher, but it decreases over time. BNB holders can benefit from reduced fees when trading cryptocurrencies on the Binance platform.

3. Binance Launchpad: Binance Launchpad is a platform for conducting token sales and initial coin offerings (ICOs). BNB is used as the primary currency to participate in these token sales. Users need to hold a certain amount of BNB to be eligible for participating in new project launches on Binance Launchpad.

4. Binance DEX: Binance also operates a decentralized exchange (DEX) called Binance DEX, built on top of the Binance Chain. BNB is the native cryptocurrency of Binance DEX and is used as a means of exchange for trading various tokens listed on the DEX.

5. Binance Smart Chain (BSC): BNB plays a crucial role within the Binance Smart Chain ecosystem. Binance Smart Chain is a parallel blockchain to Binance Chain that supports smart contracts and decentralized applications (DApps). BNB is used for transaction fees, participating in token sales, and interacting with DApps built on Binance Smart Chain.

6. BNB Staking: BNB holders have the option to stake their tokens on the Binance platform. By staking BNB, users can earn staking rewards, which typically come from the transaction fees generated on the Binance platform. Staking allows users to earn additional BNB tokens as an incentive for holding and supporting the network.

7. Token Burns: Binance periodically conducts token burns, where a portion of the BNB supply is permanently removed from circulation. These burns help reduce the total supply of BNB, potentially increasing its value over time.

What is BNB’s auto burn?

BNB’s Auto Burn, also known as the BNB Burn Program, is a mechanism implemented by Binance to regularly burn a portion of BNB tokens from circulation. The purpose of the Auto Burn is to reduce the total supply of BNB over time, potentially increasing its value.

Here’s how BNB’s Auto Burn works:

• Burn Allocation: Binance has allocated a portion of its profits to the BNB Burn Program. Binance uses 20% of its quarterly profits to repurchase and burn BNB tokens until a total of 100 million BNB (roughly 50% of the initial supply) has been burned.
• Quarterly Burn: Binance conducts the BNB burn on a regular basis, typically once every quarter. The specific date and details of the burn are announced by Binance.
• Buyback and Burn: Binance uses the allocated funds to buy back BNB tokens from the market. These tokens are then permanently removed from circulation by sending them to a burn address, where they become unspendable.
• Transparency: Binance ensures transparency in the burn process by publishing a record of the burn transaction on the blockchain. This allows anyone to verify and confirm the token burn.

The Auto Burn mechanism helps create a deflationary pressure on BNB's supply, as tokens are continuously removed from circulation. By reducing the supply, Binance aims to potentially increase the scarcity and value of BNB over time.

How to buy Binance Coin (BNB) on XT.COM?

Binance Coin (BNB) can be purchased directly from XT.COM by using a debit or credit card. Binance Coin (BNB) can also be traded for other cryptocurrencies on the XT.COM Crypto Exchange. Live Binance Coin (BNB) price is updated in real-time on XT.COM. Buy Binance Coin (BNB) on XT.COM in four simple steps:

1. Create your free XT.COM account
   Sign up or download the XT.COM appand start the sign-up process. Provide your email address, country of residence and secure your account with a strong password.
2. Secure Your Account
   Ensure stronger protection of your account by setting Google 2FA code and anti-phishing code.
3. Choose how you want to buy the Binance Coin (BNB) asset.
   Click on the “Buy Crypto” link on the top left of the XT.COM website navigation, which will show the available options in your country.
4. Buy Binance Coin (BNB)
   Use a variety of payment options to buy Binance Coin (BNB) on XT.COM.