Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. The Binance Exchange is the largest cryptocurrency exchange in the world as of January 2018, facilitating more than 1.4 million transactions per second.
Users of Binance Coin receive a discount in transaction fees on the Binance Exchange as an incentive. BNB can also be exchanged or traded for other cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, etc.
Binance Coin was created in July 2017 and initially worked on the ethereum blockchain with the token ERC-20 before it became the native currency of Binance’s own blockchain, the Binance Chain.
- Binance Coin is the cryptocurrency issued by the Binance exchange and trades with the BNB symbol.
- BNB was initially based on the Ethereum network but is now the native currency of Binance’s own blockchain, the Binance chain.
- Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy, or “burn,” Binance coins held in its treasury.
- Binance was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
- At the time of writing, Binance had a market cap of more than $46 billion and ranks behind only Bitcoin, Ethereum, and USD Tether in terms of market cap
History of Binance Coin (BNB)
Binance coin was launched during an initial coin offering (ICO) in July 2017.
It offered 10%, or 20 million, BNB tokens to angel investors, 40%, or 80 million, tokens to the founding team, and the remaining 50%, or 100 million, to the various participants through the ICO process.
Almost half the funds raised during the ICO process were intended to be used for Binance branding and marketing, while around one-third were used to build the Binance platform and perform necessary upgrades to the Binance ecosystem.
BNB was initially based on the Ethereum network but is now the native currency of Binance’s own blockchain, the Binance chain.
At the time of writing (June 2021), BNB is the fourth-largest cryptocurrency by market capitalization, behind only Bitcoin, Ethereum, and USD Tether.
Binance Coin (BNB) Burning
Although 100 million Binance tokens were initially offered in the ICO, the current total supply is lower.
Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy, or “burn,” Binance coins held in its treasury.
Binance has regularly performed these burning events. The latest BNB burn came on April 15, 2021, when Binance burned a total of 1,099,888 BNB, equivalent to $595,314,380 USD worth of tokens. It is Binance’s 15th quarterly BNB burn and its largest ever in terms of U.S. dollars.
The total supply of BNB has decreased from 170,532,825 to 169,432,937.
Binance Coin (BNB) Uses and Support
Binance was created as a utility token for discounted trading fees in 2017. But since then, its uses have expanded to numerous applications on a wide number of platforms.
It is used to pay for transaction fees on Binance.com, Binance DEX, and Binance Chain.
It can also be used for payments (at places like Crypto.com, Monetha, and HTC); to book travel accommodations (at sites such as TravelbyBit, Trip.io, and Travala.com); for entertainment purposes (virtual gifts, card packs, lotteries); to pay for online services (BitTorrent, Canva, Storm); and even for financial purposes (take out a loan at ETHLend or make investments at Moeda).
One can also use Binance coins to invest in certain ICOs that are listed through Binance’s Launchpad program. New cryptocurrencies list on the Binance exchange, and the use of Binance provides a seamless marketplace for trading in a variety of established and new virtual tokens.
The crypto token has garnered support from other partnerships which has helped its usage spread. It includes a partnership with Asia’s premier high-end live video streaming platform, Uplive, which sells virtual gifts for BNB tokens to Uplive’s 20 million-strong user base.
Binance coin is also supported by the platform, the mobile app, and the VISA debit card of Monaco, the pioneering payments and cryptocurrency platform.
Binance Smart Chain
As of June 24, 2021, the Binance Smart Chain was processing as much as 3.7 million daily transactions; triple the amount of Ethereum’s all-time high in daily transactions, but down from a record almost 12 million daily transactions reached on May 14, 2021.3
BNB Definition FAQs
What Is the BNB Coin?
BNB Coin is a cryptocurrency that is used primarily to pay transaction and trading fees on the Binance exchange.
What Is the BNB Coin Used For?
Beyond the Binance exchange, Binance Coin has several uses, including the ability to:
- Make credit card payments
- Pay for travel arrangements (on select websites)
- Buy virtual gifts
- Process payments
- Make investments
- Make loans and transfers
- Donate to charity
What Does Convert to BNB Mean?
In the world of cryptocurrency, dust refers to any amount of coins or tokens that are so small they’re often ignored. They’re basically the tiny fractions left from trades.
Binance allows traders to convert their dust into BNB.
What Is a BNB Market?
The BNB market simply refers to the place where BNB is bought and sold. Most purchases of BNB take place on the secondary market.
Traders are able to buy and sell BNB on Binance.com as well as other crypto platforms.
Is Binance Banned in the U.S.?
On May 13, 2021, Bloomberg reported that Binance Holdings is under investigation by the Justice Department and Internal Revenue Service. According to the report, laundering and tax sleuths have probed individuals with insight into Binance’s business.
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” Binance spokeswoman Jessica Jung said. “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”
Binance is incorporated in the Cayman Islands.