What is binance coin and How does binance coin work?

What is a Binance Coin (BNB)?

Binance coin is a cryptocurrency issued by Binance crypto exchange Binance is the world’s largest cryptocurrency exchange platform which was started in 2017 and is domiciled in the Cayman Islands.

Who are the founders of Binance Coin (BNB)?

Changpeng Zhao is the founder as well as the CEO of Binance.

Binance coin was firstly based on the Ethereum platform, but due to the rapid expansion of the Binance crypto exchange, it was later based on the Binance blockchain. Binance coin is coded as BNB and was started in 2017.

Binance was originally designed aiming at discounted fee trading, but due to the overwhelming response from the crypto community, it was later universalized to support payments for travel booking, purchases, online services and entertainment purposes.

With a market cap of 56 billion US dollars, the most popular crypto lies just behind Bitcoin, Ethereum and USD Tether in market cap. Due to the dedicated Binance blockchain supporting the Binance coin, it has gained insane popularity among the crypto peers in almost no time

An interesting fact is that the creators of Binance coin ( creators of Binance Crypto exchange themselves) burn/ destroy 1/5ths of their profits every quarter to control the market circulation of the Binance coin.

Binance Initial Coin Offering/ ICO was held in July 2017 with a rigid cap of 200 Million coins in circulation. 10% or 20 million coins were offered to Angel investors, who have invested in the project in the initial stages. Binance offered 40% of the total volume of 80 million binance coins to the founding team of the Binance coin. The major share, which amounts to 50% of the total coin volume/100 million coins were offered in the initial coin offering/ICO for various customers.

The Burning move of Binance coin founders proved successful in containing the supply of coins, thus, subsequently increasing the worth of the coins. Burning 1/5ths of total coins held in the treasury every quarter has been performed by the exchange a total of  15 times till now, gradually decreasing the count of coins in worldwide circulation. The 15th burning activity of the Binance coin is deemed as by far the largest in the US crypto market, destroying a total of 1,099,888 BNB or $595,314,380 worth of coins. Thus the current value of 169,432,937 has decreased from the previous value of 170,532,825 in the 15th burning event.

How does Binance Coin (BNB) work?

Binance with 1.4 million transactions handled per second is by far the world’s largest cryptocurrency exchange. It is traded with a symbol of BNB. Having been built on the Ethereum blockchain, BNB runs on the ERC20 tokens which are limited to 200 million BNB tokens. 

How to use Binance coin/BNB:

One of the most popular cryptocurrencies in the world has numerous uses in the business world, even though it was created to facilitate transaction fee payment in the Binance exchange and as a utility token, its unprecedented rise in a global cryptocurrency has expanded the range of uses of the coin. They are:

  • Binance Coin can be used for paying for online services.
  • Used for paying transaction fees on various platforms.
  • It can be used for entertainment purposes, such as gifting, Virtual gift cards, vouchers, coupons.
  • Binance coins can be used to purchase coins offered through ICO by the Binance launchpad programme
  • Asian streaming service provider UpLive has collaborated with Binance and they are now accepting payments in the form of Binance coins for their services and products.
  • Various investment platforms like Moeda are accepting Binance coins as a form of payment.
  • Binance coins can be also used in loan repayment by the borrowers.
  • Binance coin is also accepted by many platforms like Visa card of Monaco for transactions, all thanks to the rapid popularity gain of the BNB.

Binance Smart Chain

Binance smart chain is a cutting edge blockchain designed by Binance exchange to support the insane number of transactions of Binance coins every day. As of the last week of June 2021, binance smart chains recorded an all-time high in terms of daily crypto transactions, which is a staggering 3.7 million transactions per day, which is higher than any of the ethereum’s all-time highs, but it still lags behind the all-time high of Binance daily transactions which is 12 million transactions, recorded on 14th May 2021.

Is Binance banned in the US?

According to Bloomberg, the United States legislature has ordered authorities to investigate Binance as the government senses some kind of discrepancies with the taxes paid by the Binance. As the company is domiciled in the Cayman Islands, the US government has little to no impact on the operations and existence of Binance coin, but, the spokesperson of Binance has commented that their company takes Taxes and federal regulations very seriously.

What makes Binance Coin Unique?

With a market capitalization of 56 billion dollars, Binance coin has become one of the stable, high valued, low risky cryptocurrencies attracting every crypto enthusiast out there. Ease of operating, stability, guaranteed growth and wide range of acceptance is helping Binance coin to compete with its counterparts like Bitcoin, Etehreum, USDtether.

How many Binance coins are in circulation?

It is estimated that there are 153,432,897 BNB Coins in circulation currently, with a maximum being 170,532,785.

Conclusion

What started as a utility token has surprisingly become the world’s 4th best cryptocurrency ( In terms of Market capitalization).

Thanks to the rising popularity of digital currencies among people across the world, the wave has contributed to the growth of the volume of many cryptocurrencies and subsequently bitcoins.

With blockchain technology bringing an earth-shattering disruption in every industry known to mankind out there, cryptocurrencies have soared high in popularity, Market capital, the total volume of various coins. Payments, trading, lending, borrowing, investing, buying, selling were never the same as before, with the latest advancements of Financial technology.

And the scammer-free structure of the blockchain is promising maximum transparency to the users and even encouraging them to transact with cryptocurrencies.

At this point in history, cryptocurrencies have become an inextricable link in global operations, fuelling humanity stealthily. Binance coin has undoubtedly taken advantage of the blockchain and people’s increasing inclination towards adopting cryptocurrencies for financial transactions.

BNB has a very humble beginning, great going and a very promising future for all the enthusiasts and traders. Along with the BNB, there are many other cryptocurrencies listed in the Binance exchange which are of high significance in the crypto ecosystem and the Finance world.

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