Check out our full guide where you’ll find out all the ins and outs of the Binance Coin phenomena, learn how to buy, store and sell BNB.
Binance is a major cryptocurrency exchange on which more than 380 cryptocurrency exchanges can be exchanged as of August 2018. This has been the biggest cryptocurrency exchange in the world as calculated by trading volume since January 2018.
It is also one of the largest cryptocurrency exchanges in the world, with a potential of 1.4 million orders per second. It varies from most other exchanges in that it deals solely with cryptocurrencies and does not deal with fiat currencies.
It was founded in 2017 by Chinese-Canadian business executive Changpeng Zhao, who also serves as CEO, with Roger Wang as co-founder & CTO. Previously, Changpeng had founded and led BijieTech, an exchange company for cloud-hosted network operators. He was also a co-founder and CTO of OKCoin.
Binance was initially based in Shanghai, but just before the Chinese government forbade cryptocurrency trade, they moved their headquarters and servers to Japan. In March 2018, the Japanese Financial Services Authority (JFSA) ordered it to shut down its activities in the region. Binance is preparing to move its activities to Malta.
What’s Binance Coin (BNB)?
Binance Coin (BNB) is a cryptocurrency created and distributed by the cryptocurrency exchange of Binance.
The Binance coin was developed specifically to promote the functionality of the Binance exchange and environment. It may be used for a variety of specific purposes in the Binance environment, such as payment of trade costs, withdrawal costs, listing and exchange fees, and so on. Binance coins can also be used to invest in new IEOs listed in the Binance Launchpad system.
Users will receive a discount on each transaction made with BNB according to the predetermined schedule as follows: a 50 percent discount for all transactions in the first year, a 25 percent discount for transactions in the second year, a 12.5 percent discount for transactions in the third year, a 6.75 percent discount for the fourth year and no additional discounts thereafter. Such discounts are used to push traders to use the Binance Coin.
Several alliances have also helped promote the use of the token. One such collaboration is Uplive, Asia’s number one high-end online video sharing site. Taking advantage of its 20 million strong user base, Uplive offers interactive rewards for BNB tokens. Another network that supports Binance coin is Monaco, a groundbreaking payment and blockchain network that offers BNB tokens on its smartphone app and VISA cards.
Binance Coin (BNB) Initial Coin Offering
Binance Coin Debuted via the Initial Coin Offering (ICO) which took place from 26 June to 3 July 2017.
At its ICO, BNB was issued at 1 ETH for 2,700 BNB, or 1 BTC for 20,000 BNB, with a minimum of 200 million tokens delivered. Binance Coin sold 10 percent, or 20 million, of the BNB tokens to angel investors; 40 percent of the tokens, or 80 million tokens, to the founding team; and the remaining 50 per cent, or 100 million tokens, to all other members.
All of the tokens were produced before the token sale event, and the ICO helped collect $15 million. Approximately 50 percent of the funds raised during the ICO have been set aside to be used for branding and promotion, while a third of the funds have been set aside to create and improve the Binance Network and the infrastructure, as well as to update its infrastructure.
As was the case at the time of writing, Binance coin had a market value of more than $3.5 billion.
Binance Coin (BNB) Token Scheme
As the discount rate on the Binance Coin reduces over time, the value of the coin is often projected to decline over time. Binance’s got a strategy to combat this.
According to their white paper, they intend to use 20% of their earnings to repurchase tokens per quarter on the basis of market volume; such repurchased tokens are ‘burned’ (destroyed).
It will continue until just 50 percent, or 100 million, of the tokens remain in circulation. This is intended to help the token maintain significant interest.
Through April 2018, Binance had burnt 2,220,314 BNB tokens worth a total of around $30 million.
How BNB works?
Binance Coin was initially introduced on the Ethereum network with the ERC-20 standard, but ultimately switched to Binance’s proprietary network, Binance Chain.
The Binance Chain does not endorse smart contracts, as opposed to the Ethereum blockchain. Binance Chain uses the Tendermint consensus system, the Byzantine-Fault-Tolerant (BFT).
It involves different types of nodes, such as validator nodes, which are members who vote to validate or invalidate transactions; accelerator nodes, which speed up the process of validation of transactions; and witness nodes, which serve as witnesses to the consensus process and broadcast transactions to other nodes. After each block has been made, the fees are allocated among the validators.
How to Buy Binance Coin
First off, you can’t get Binance Coin from mining operations, unlike other coins. In their roots, all the tokens of Binance are pre-mined. Cryptocurrency owners who choose to buy this token can only acquire it from a cryptocurrency exchange.
Since Binance is itself a cryptocurrency exchange, it enables BNB trading by combining it with more than 70 other cryptocurrencies.
BNB can also be traded on a number of other crypto markets, such as Bancor Network, Gate.io, IDEX, Trade Satoshi, and several more.
Before you partake in any deal, you will equate the prices of your preferred transaction to all available exchanges. Doing so would give you the highest possible trading rates.
How to Hold BNB Tokens
Just as other coin exchange, Binance offers a digital wallet that can be used to hold BNB tokens or any other digital currency that can be exchanged on a Binance platform.
In mid-2018, Binance took over the Ethereum-based coin mobile wallet, the Trust wallet. This wallet is now the official wallet of Binance.
In addition to the specified wallet, binance tokens can also be deposited on any other Ethereum-compatible wallet. Some of the supported choices include MyEtherWallet, Metamask, Mist, Ledger Nano S and Trezor.
Binance Coin Future: Is It a Good Investment?
Binance is considered to be one of the tokens that shocked the crypto community by experiencing rapid growth in little time to become the biggest trading-volume-based cryptocurrency exchange.
Due to the performance rate, consumers and creditors have become more willing. The secret to Binance’s popularity and respect is the product of this forward-thinking and devoted squad. The team consists of people from diverse environments with specialist expertise with years of experience, working together to make Binance a worthwhile endeavor. Binance’s protection was put to the test in 2018, when hackers sought to break into the network, this effort was brought to nothing as Binance gracefully repulsed the attack.
The original price of BNB at launch in 2017 was $0.115203. Initially, the growth rate was slow until later in mid-December 2017, when market volatility improved.
Later in January 2018, the price rose again to a new high of $24.91, followed by an almost immediate fall. As of September 2, 2019, the price was $22.62, which is 19.534.91 per cent higher than the original launch price of $0.115203.
If you are searching for a virtual currency with an amazing return, the BNB is the right choice for you. At its current value, which is $22.62, if you buy a $100 Binance coin today, you will receive 4.41 BNB coins.
Forecasts say that by this point in 2024, Binance would be worth $80,070, which would raise the initial investment value by 253.6 per cent. That means that your $100 will be worth $353.6 in 2024. For the same estimates, today’s $100,000 gain in Binance will be $353,600 in 2024.
In addition, you don’t need to be convinced to know that the Binance coin (BNB) is a decent bet.