The crypto currency launched by Binance, which is among the largest cryptocurrency exchanges in terms of market value, is called Binance Coin (BNB). BNB was launched through initial coin offerings (ICO) 11 days before the stock market opened in 2017.
Binance Coin was originally released as an ERC-20 token on the Ethereum blockchain. The coin was converted to the BEP2 token with the launch of the Binance Chain mainnet in April 2019. With the later launch of BNB on Binance Smart Chain (BSC), there are three different types of BNB on the market: BEP-2 on Binance Chain, BEP-20 on BSC, and ERC-20 tokens on the Ethereum network.
What does BNB do?
BNB, launched by Binance, can be used to cover the fees paid for transactions made on the exchange. BNB used in the decentralized arm of the exchange, Binance DEX, can be staked to participate in token sales on Binance Launchpad.
Binance offers a 0.1 percent discount to those who pay the transaction fee with BNB on the platform. Binance Coin also finds use in transactions on Binance DEX and hundreds of applications based on Binance Smart Chain. More than 180 digital assets have been created on BSC so far.
BNB can also be used as a means of payment. According to Binance’s official website, it is possible to use Binance Coin to pay off Crypto.com credit card debt, buy smartphones at HTC stores, participate in auctions in Decentraland, and purchase gift cards as part of a partnership with Gifto. BNB can also be used for hotel and flight reservations on sites such as TravelbyBit and Travala.com.
BNB, which started 2021 with a price of $37 only, went up to $610 as of April 29, 2021. Again, the crypto money, which gave investors 1.648 percent in the first four months of 2021, is also preferred by investors due to its high return.
When Binance Coin was first launched, its supply was capped at 200 million, but this supply has dwindled over time thanks to Binance’s token burning mechanism. The exchange uses 20 percent of its profits to repurchase and burn BNBs to reduce the supply and preserve the value of the cryptocurrency. Binance will continue this process until 100 million coins are burned.
Because the Binance blockchain uses the Byzantine Fault Tolerance consensus mechanism, it is not possible to mine BNB as with Proof of Work (PoW) blockchains.
With a market cap of $92 billion as of April 29, Binance Coin ranks third among the largest cryptocurrencies. BNB, whose market dominance is measured at 4.40 percent, reached an all-time high of $637 on April 12, 2021.
Binance Coin can be purchased on the crypto exchange Binance with money transfers, credit and debit cards or other cryptocurrencies. BNB is also listed on exchanges such as FTX, Poloniex, Bithumb, HitBTC, and KuCoin. It is also possible to buy BNB through BSC-based PancakeSwap. The Binance Trading Widget in Brave Browser allows users to buy and sell BNB within the browser.
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