What is Binance Coin?
Binance coin (BNB) is a native ERC20 token of the Binance Exchange, a leading trading and exchange platform exclusively for cryptocurrencies. BNB was used to fund the exchange’s ICO and now serves as a utility token that offers holders a range of useful features, such as discounts on trading fees on the platform and the possibility to trade it for other coins on Binance Exchange. Binance Coin is expected to eventually become the native coin of the decentralized Binance exchange.
The key facts about Binance coin (BNB)
While other cryptocurrencies are either in the development phase or going through vigorous trials, the Binance coin is one of the few crypto tokens on the market that is rather easy to appraise. That’s due to the fact that BNB’s value is closely correlated with that of the exchange itself. How do we arrive at this conclusion? It’s easy to get an insight into Binance exchange’s standing in the market simply from looking at its trading volumes and historical growth rate. By taking the exchange from zero to one of the world’s top trading platforms, the team behind Binance have demonstrated they have what it takes to execute on their plans and put up a solid fight against established competitors. This inspires confidence in the platform and its future developments.
Besides that, Binance coins enjoy a growing demand due to three key reasons: users’ desire to benefit from the available discounts on trading fees, speculation and quarterly coin burns. As mentioned earlier, Binance coin holders enjoy lower transaction fees. Given that Binance’s 24-hour trading volume can go up to a staggering $1.6 billion, many users seek out the opportunity to pay lower tradings fees.
Binance exchange is also actively reducing the coin supply through an event known as coin burn. During the quarterly burn, Binance sends the coins to a public address whose private keys are unobtainable, in such way effectively destroying the coins. The price of the Binance coin is going up as its supply is going down. And Binance is actively buying back coins to burn them in order to raise the value of the remainder. In fact, during its ICO, Binance team have promised early investors to use 20% of profits to buy back BNB and destroy them to drive up the coin’s price.
What is Binance exchange?
Binance started as a little-known Chinese crypto exchange and grew to be one of the leading crypto-to-crypto exchanges. It is known for its fast transaction processing and low trading fees. The platform’s technical capacity is also impressive: it’s capable of processing 1.4 million transactions per second, which makes it a leader in cryptocurrency exchange volume. Today it has more than 300 trading pairs with roughly $1.6 billion in trading volume and 6 million users.
The team and partnerships
Changpeng “CZ” Zhao is the founder of Binance and a prominent figure in the crypto space. With a deep background in finance, trading and blockchain technology, and quite a few successful businesses under his belt, CZ has proven to be a highly capable businessman. He led Binance’s ICO that raised $15 million and led the company to tremendous growth in a very short time. Before Binance, he co-founded one of the world’s biggest Bitcoin exchanges – OKCoin.
Yi He is Binance’s CMO and a leading cryptocurrency expert as well as a co-founder of OKCoin. The team is also closely partnering with a popular Chinese blockchain protocol NEO smart economy. Overall, it’s a very experienced and talented team.
The future of Binance (BNB)
At the moment, BNB’s acts solely as a token for paying trading fees. However, the Binance team have bigger and bolder plans for the coin. For instance, it’s already possible to use BNB to invest in active ICOs hosted on the exchange, which provides holders a neat way to invest and realize a return on their holdings.
Binance have also announced their plans for creating a decentralized exchange called Binance Chain. They decided that new assets on this exchange will be powered by BNB, further increasing demand for the coin and spurring its price up.
As Binance continues to expand and add new features, the BNB coin will also become increasingly useful. And with the quarterly coin burns taking place, it’s reasonable to predict the coin will significantly gain in value. Those who are already speculating, might want to think about accumulating BNBs to turn a profit later.