What is Binance Coin (BNB)? Everything you need to know about BNB Coin

What is Binance Coin (BNB)?

Binance Coin (BNB) is a coin that was issued through an ICO by the Binance in July 2017 before Binance Exchange opened for trading. Built as an ERC-20 token, BNB was initially used as a transaction fee for users based on the BNBs they hold on the exchange.

The advantages of BNB are not much different from other exchange coin projects, but it does have its benefits over other high transactions fee coins such as GDAX. BNB offers decentralized trades, so there are no limits associated with trading volume at all.

Detailed information about BNB coin

Key Metrics BNB

• Name: Binance.
• Ticker: BNB.
• Blockchain: Binance Chain & Binance Smart Chain.
• Token Type: Utility.
• Consensus: Tendermint.
• Initial Supply: 200,00,000.
• Total Supply: 168,137,036.
• Circulating Supply: 168,137,036.
• Contract Address: 0xb8c77482e45f1f44de1745f52c74426c631bdd52

BNB Token Allocation

Initially, BNB tokens are distributed to:

• ICO: 50% - 100,000,000 BNB.
• Founding Team: 40% - 80,000,000 BNB.
• Angel Investors: 10% - 20,000,000 BNB.

The BNB tokens are burned in a quarterly event whereby Binance buys back BNB using its profits then destroys the coins.

The last recent event in July 2020, 1,296,728 BNB (390,855,150 USD) were burned by Binance. This activity will continue until the total burned amount reaches 100,000,000.

BNB Token Sale & Release Schedule

Investors can purchase BNB tokens on a first-come, first-served basis until 100 million are sold. The price will increase as the phases go by; angel investors and investors will receive their new coins within a few working days after the ICO ends.

However, the BNBs distributed to the Binance team will be fully unlocked in 5 years with 20% each year.

BNB Use Case

BNB token has many use cases in the Binance Ecosystem and elsewhere, such as:

• Exchange Fees: Binance tokens are used to reduce the cost of trading, margin, and other activities. The platform currently offers 10 Tiers for users based on the amount of their BNBs holding.

• GAS: BNB can be used to pay for GAS to use advanced features on Binance Smart Chain.
• DEX: BNB can also be used for trading fees on Binance DEX
• Staking: Binance also offers locked-staking activity. Users can earn up to 27% Annual Interest Rate for 15 days duration. Users can stake BNB tokens with AIR up to 27%.
• Binance Launchpad: For new listings on Binance Launchpad, participants are required to hold and commit their BNB to participate in IEOs.
• NFT Market: Recently, Binance has opened an NFT Marketplace, where users can explore and use native tokens to buy digital artworks and collectibles with their accounts.
• Merchant payments: People can pay for goods and services in BNB on TravelbyBit or Pundi X worldwide through merchant POS systems.
• Traveling with BNB: On travel booking platforms such as TravelbyBit and Trip.io, people can use BNB to pay for hotels and flight bookings.
• Virtual gifts: People can use BNB to pay for virtual gifts on websites such as Gifto.
• Buying property: Pay for real estate assets using BNB on property listing websites such as Propy.
• Charity: Donate on Binance Charity
• Referral Program: Binance rewards its users when they invite friends to join the Binance community.
• Earning in-game rewards: Another way to earn Binance tokens is by playing games and earning bonuses from platforms such as VIBEHub.

How to buy BNB coin

You can buy BNB on these listed exchanges:

• DEX: Uniswap, Pancakeswap, Sushiswap...
• CEX: Binance, Huobi, OKEx...

Alternatively, you can use Coin98 Exchange to swap other tokens to BNB using the swap function at the end of this article.

Learn more: How to use Coin98 Exchange

How to get BNB coin

Users can stake BNB tokens to earn rewards paid in BNB. APY can be varied and up to 27% annually.

How to store BNB coin

You can store BNB token on Coin98 Wallet with these below steps:

Step 1: Open Coin98 Wallet & click Receive on the home screen.

Step 2: Search BNB Token.

Step 3: Click on the correct result, copy the wallet address and send BNB to this address.

Roadmaps and Updates

Binance has been a pioneer in the crypto market, constantly adapting to meet its users’ needs. Their roadmap has been adjusted to keep them in the top position of this fast-paced industry.

2017 - 2019: Binance focused on its trading platform, introducing a range of new features and expanding its Binance Chain.

2020 - 2021: Binance has been focusing on expanding its ecosystem of products. The company wants to use these new features to attract more people and developers to the Binance platform.

2021 onwards: Binance aims to become a Cross-chain financial infrastructure, which will usher the internet of value. To achieve this enormous goal, Binance has a plan for several things below:

• It aims to strengthen its infrastructure and critical services and build critical services to protect/expand DeFi.
• It is enhancing security measures for the platform to achieve mass adoption.
• Binance encourages developers to create more applications in their ecosystem.

Team, Investors, and Partners

Team

Being one of the largest exchanges globally, Binance is also one of the most decentralized. The team includes members all across Asia, Europe, and the US.

They even have two leaders:

• ChangPeng Zhao (CZ) - Founder: Experience engineering high-frequency trading systems and working for other crypto startups such as BijieTech. Previously worked with Bloomberg LP and Fusion Systems.
• Yi He - a co-founder from China with over ten years of experience as an entrepreneur before working at Binance full-time since last year.

Other members who recently joined the team:

• Catherine Coley - former Head of XRP Institution and Sales in Morgan Stanley - joined the team as the CEO of Binance US.
• Colin Goltra - Director of Binance Southeast Asia: previously worked as Head of Cryptocurrency Program at Coins.ph.

Investors

Binance, the world's leading digital asset trading platform, is funded by 13 investors. The latest members to join Binance’s list of partners were Karnika Yashwant and Vertex Ventures Southeast Asia & India Ltd., who invested $1 million in seed funding in September 2020. This amount brought their total investment amount up to a hefty $35 million so far.

Sequoia Capital is one of the most influential investors in recent history with a rich, successful track record. They guide companies worldwide and have invested heavily in blockchain technology and other emerging industries. Their partnership will be an incredible asset for Binance's future success!

Partners

Binance is currently the largest cryptocurrency exchange in the world with a dominant market share. They also have more partners than any other crypto exchange, including direct and indirect partnerships. The number of partners is expected to grow as the project is scaling up more and more as the industry leader.

As a leading crypto exchange, Binance is to announce their partnership with the FTX team. This collaboration will bring positive changes soon for all those who believe in blockchain technology and cryptocurrencies.

Is BNB a good investment?

This article has provided some of the main ideas related to the BNB token and its implications. Still, it is important to note that there are a few key points that investors should take into account before making investment decisions:

• Binance will burn BNB quarterly until the total supply reaches 100,000,000 tokens.
• Binance Exchange is the largest platform in the market, and CZ (Founder) is known as the forefront of driving trends within the industry.
• Binance Smart Chain was snowballing and considered the second most extensive ecosystem with a $21 Billion Total Value Locked in DeFi category.
• Binance is the only outside investor for the FTX Team.
• From 2021 onwards, the Cross-chain Infrastructure could be the must-have solution for almost every blockchain as we have seen the massive growth of Layer one blockchains in 2021.

Conclusion

Binance is a new blockchain and a cryptocurrency exchange. Its activities are not just for those who want to trade cryptocurrencies but also for people with little knowledge and no experience. Crypto derivatives trades are an advanced form of cryptocurrency trading that even experienced traders can learn.

Binance and its ecosystem have many features that appeal to more beginner or experienced users, including various innovative functions. The Binance team, especially CZ, can potentially help the crypto space snowball and diversify in the future with their motivation and professionalism.