Binance Coin is called BNB and was launched by the prestigious crypto platform Binance. The objective was to facilitate operations and develop a crypto-digital ecosystem around its currency. Investors can use BNB in various situations: payment of operational commissions or fee of platform charges, among others. During its launch in 2015, Binance offered a 50% discount on trading, which would be reduced by another 50% each year to end its fifth year finally.
Binance also allows the coin to be used for investments in so-called “Initial Coin Offerings” (ICOs). These are collected in the “Launchpad” section of the platform. These new tokens are offered in the exchange to facilitate your foray into trading.
Binance Coin is nothing more than a digital currency. “Essentially, the underlying gasoline powers the Binance ecosystem.” This is how they are defined on the Binance website. Let’s look a little further and go to the Binance technical report. We see that the BNB was contemplated since the creation of this exchange platform and its intention was nothing more than to obtain financing and offer benefits to the holders who operated in the same venue. It has a total supply of 200 million coins and was created to encourage transactions on the exchange through discounts to users who have BNB in their Binance accounts. Like other cryptocurrencies, it is based on a decentralized technology organized under the blockchain architecture. In addition to providing benefits to its holders, BNB can also be used as a transfer of value items on the Internet.
Is Binance Coin a type of money?
The reason that led to the creation of BNB was to empower the platform’s ecosystem by facilitating trading operations for its users and investors. The coin can be used, in some cases, to pay for accommodation or travel services, but in general, its use as money is not widespread, so it would not be logical to classify Binance Coin as money.
Is Binance Coin legal?
If we consider that the currency belongs to one of the most important exchanges in the world and that, in addition, it is a platform that meets all legal requirements, the answer is clear: of course, Binance Coin is legal. And it is that Binance, as a platform dedicated to crypto investments, complies with regulations as rigorous as KYC or AML. In this way, it is a clear example of a company that offers a space where your financial and personal information and your funds will be safe.
What do people use Binance Coin for?
BNB has various uses. For example, you can use it to invest in the short or long term. Here is a list of some of its most popular apps:
- You can invest in BNB to trade regularly and earn a passive income in cryptocurrencies. You can take advantage of the volatility of the crypto universe for your benefit.
- BNB is used to pay commissions and platform charges, which allows you to save in terms of expenses per transaction.
- Make investments in new crypto tokens trying to make their way into the sector. All these thanks to its “Launchpad” function.
- Using BNS in the «Launchpool» function, a tool that allows you to get new coins, that is passive income.
Which businesses accept Binance Coin as a form of payment?
Binance has used its powerful influence to strike deals with multiple businesses that today accept BNB as a valid form of payment. Next, we list the most outstanding firms in this regard. These are online outlets and retailers that accept Binance Coin with no problem:
- TravelbyBit: You can use this service to travel worldwide and pay with BNB at merchants in Australia.
- Crypto.com: If you want to pay the expenses generated by your credit card with BNB, Crypto.com offers you this possibility.
- Mithril: This decentralized social network based on the Ethereum blockchain that rewards users for content creation. Logically, it accepts payments with BNB.
- Gifto: You can use BNB on this live video platform to easily purchase virtual gifts.
- Pundi X: Any merchant or establishment using the XPOS device made by Pundi X will accept BNB as a valid form of payment.
- Aeron: You can pay with BNB coins at this highly regarded aeronautics store.
- Mode: If you want to invest using BNB, Moeda allows you to do so worldwide.
The technology behind Binance Coin
Binance Coin used the Ethereum blockchain and the ERC20 currency system that can store value. However, this structure was changed to BEP2 BNB tokens in April 2019 when the platform decided to launch the Binance Chain manner.
The coins were fully pre-mined and distributed during the ICO, so they cannot be mined using typical protocols in the crypto sphere, such as proof-of-work or proof-of-stake. The BNB coins currently in circulation are generally utilized for discount trading on Binance’s platform. This discount was 50% at the beginning (first year). However, it has been decreasing since then.
The discount will be eliminated when the fifth year of existence is reached. To deal with the depreciation that BNB will suffer. As a result, Binance has adopted a BNB buyback strategy to destroy them and limit the supply. Binance plans to eliminate 50% of the coins in circulation today.
Users who own cryptocurrencies of a company, in this case, an exchange, can see them as shares of said company. Although they are not actions per se, their operation is very similar. Binance news, developments, new projects, and balances directly affect your BNB cryptocurrency. Fortunately, Binance has not only remained at the forefront but also leads the platform rankings by transaction volume very strongly. Now, in addition to being a kind of action, users also obtain other benefits. We quote some of the primary uses that are mentioned on the web:
- Commission payments on the exchange, obtaining a 50% discount on operations during the first year.
- Monaco solutions can now be used with BNB tokens. This includes your web application and your VISA card.
- Other platforms support the use of BNB for virtual gifts.
How it all started: The story behind Binance
Binance Coin was launched in 2017 through an ICO offering 20 million coins for investors, 80 million for various staking projects, and another 100 million for interested retail investors. The money raised through the BNB ICO was injected into the exchange for development, branding, and marketing. A portion of the investment was also used to improve Binance’s trading section.
Binance Coin Mining: How Are Coins Created?
BNB cannot be mined using proof-of-work or proof-of-stake systems. Instead, it is based on the Byzantine Fault Tolerance (BFT) consensus method involving validators who earn BNB by verifying blocks on the network.
Supply: How many coins are there, and what is the limit?
Initially, when the ICO took place, Binance limited the supply to 200 million coins. However, due to various sweeps that have been carried out to prevent the depreciation of the crypto asset, the current collection is approximately 176 million. This means that 12% of the initial coins have been destroyed since its launch. At the time of writing, there are some 144 million coins in circulation, and the cryptocurrency market cap is $3.4 billion.
Binance has no plans to create more coins and relies on the demand and supply of the currency to establish its price.
Decentralization: What does it mean?
Decentralization is a concept that refers to the fact that no individual, regulatory body, or organization of any nature has sufficient power to control or disproportionately influence a network, in this case, the blockchain. On the contrary, it is the participation of all the actors and the consensus reached on how it survives and grows. There are various ways to manage a decentralized network, but the common point is always the same: no central authority can control it.
This makes the network something democratic and immutable. It means that it cannot be censored following the wishes of a few and that it is committed at all times to publicity and transparency.
What is Binance Coin, and why was BNB created?
The BNB coin powers the Binance ecosystem and is the native cryptocurrency of the Binance Chain. Founder Changpeng Zhao launched the Binance cryptocurrency in 2017 after an initial coin offering (ICO). The ICO contributed more than $15 million and financed the start-up expenses.
In the universe of cryptocurrencies, the Binance platform is considered the best exchange worldwide regarding investment volume and provides a trading platform for more than 150 cryptocurrencies. The exchange launched its cryptocurrency to work in tandem, and the price of a BNB coin for one token started at $0.1 and has since risen tremendously in price.
The coin was created to operate a native cryptocurrency. BNB Coin was also designed to offer investors an alternative way to pay the fees that the exchange charges. This digital currency has a maximum supply of $200 million, which will eventually overtake Bitcoin in terms of supply.
It is no wonder that Binance Coin has many use cases on the Binance blockchain. One of them is that it can be used to pay various fees on the Binance exchange. Some of the costs produced with Binance Coin are investment fees, exchange fees, and listing fees.
In addition to paying fees, investors can use the BNB digital currency to invest in specific ICO offerings recognized by the Binance exchange and participate in initial exchange offerings (CEOs) on the Binance Launchpad.
How does BinanceCoin work?
Of the 200 million BNB coins initially mined, 100 million were distributed during the ICO, 80 million of them financed the Binance project, and 20 million were attributed to angel investors. BNB coins were previously ERC20 coins until Binance recently upgraded the originally released token to its main net blockchain.
Binance Chain and Smart Chain allow users to build their decentralized apps and digital assets on a blockchain. They can do this while taking advantage of the fast performance that Binance offers on its decentralized exchange (DEX).