Binance Coin (BNB) is the token associated with the Binance exchange platform. While it started out as an ERC-20 token, the coin now operates on its own native blockchain, known as the Binance Chain Blockchain.
By: CryptoVantage Staff | Apr 9, 2020 | Modified Apr 18, 2020
All-Time High: $39.57 USD (Jun. 22, 2019)
All-Time Low: $0.096109 USD (Aug. 1, 2017)
Circulating Supply: 155,536,713
Total Supply: 187,536,713
Transactions Per Second: Unknown
Reason: A large amount of Binance Coin is centralized in the hands of its creators. 40% of the 200 million tokens in existence were kept by the founding team, and other 10% of the total supply went to angel investors. Although, 20% of Binance’s profits go to purchases of Binance Coin every month. Those purchased coins are then burned, which will eventually result in each Binance Coin having more value.
Reason: There will never be a shortage of developers around Binance Coin and Binance Chain as long as the company behind the project has the money to pay people to work on the project. Binance is expanding its ecosystem very rapidly, into various countries, and companies with a number of initiatives including open sourced projects. Binance has shown an active interest in participating in open-source efforts. The best example of this is a library that aids in simplifying the cryptography that drives several other blockchains such as Bitcoin, Tezos, and Ethereum. read more here.
Reason: Binance Coin is a top 10 coin, which means as far as cryptocurrencies go, the liquidity is quite available depending on which exchange you choose to use. It is surprising to see so many exchanges offer Binance Coin on their exchange, as it indirectly supports their competitor, Binance Exchange. The best liquidity for BNB happens directly on the Binance exchange.
Binance Coin (BNB) was created as an ERC-20 token on Ethereum by the Binance cryptocurrency exchange back in 2017. The initial coin offering was conducted on Binance.com, which was the exchange’s completely new website. On the back of its new token offering, Binance experienced incredible growth through the end of 2017, enjoying $200 million of profit in only its second quarter.
While originally launched on the Ethereum blockchain, the goal of Binance was to eventually transform itself from a centralized exchange to a decentralized community. The way to achieve this goal was to launch a new, native blockchain for the BNB token. Binance Chain launched in the first quarter of 2019 with a decentralized exchange built on top of it, known as Binance DEX.
To purchase Binance Coin you probably want to go straight to the source: Binance Cryptocurrency Exchange. Binance Coin is unusual compared to most cryptocurrencies in that it is the native currency of Binance exchange. Binance isn’t the only place that lists BNB but it’s the only exchange where you’ll get perks for holding and transaction with the coin.
It’s not completely extraordinary for an exchange to offer its own cryptocurrency as Coinbase (USDC) and Crypto.com (CRO) also have their own coins.
The main advantage of Binance Coin is for anyone who is trading on Binance Chain. Those who pay their Binance trading fees in BNB get a 25% discount.
The only other main use case for BNB is to pay fees on Binance’s decentralized exchange, as BNB is now the native token of Binance Chain, which is the blockchain on which the Binance DEX is built.
Binance is working on integrating their cryptocurrency in a host of other platforms and services. As this endeavour continues, you will be able to spend your BNB in more and more locations. For a complete list of places you can use/spend your BNB, see the use-bnb page.
The main disadvantage of Binance Coin is the centralized aspect of its control and governance. The direction of the blockchain, and the ecosystem has heavy guidance from Binance. This is only a disadvantage from the perspective of someone who prefers maximum amounts of decentralization. Binance has gotten into trouble with various governments since its monumental rise in 2017. This has made several users, and investors nervous about their investment in Binance. If there was to be government intervention, where the Binance Exchange were shut down, then Binance Coin would surely suffer.
Binance Coin currently has two main use cases on top of the other common use cases of cryptocurrency. One, BNB can be used to receive a 25% discount for trading fees on Binance Exchange. Secondly, BNB can be used to pay fees on the token’s native blockchain, Binance Chain. Binance is working to provide many places to spend your Binance Coin. For a complete list of places you can use/spend your BNB, see the use-bnb page.
Yes, BNB is traded on a number of different exchanges. However, some of the largest exchanges in the world do not have BNB available for trade on their platforms, likely due to reasons related to competition.
Yes, Binance Coin can be purchased via Mastercard directly on Binance Exchange, in addition to a few other platforms focused on purchasing cryptocurrencies with a credit or debit card.
Binance Coin is likely not as safe as Bitcoin due to BNB’s relatively short history of existence. Additionally, holding any cryptocurrency, especially an altcoin, should be viewed as risky. Then again, there’s no reward without risk.
Yes, Americans can buy Binance Coin. Binance has a platform specifically built for US-based users, known as Binance.us.