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Binance is a large exchange in terms of income, trading volume, number of employees and ambition.
What is BINANCE Coin (BNB)?
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 July 2021, 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.
Uses of Binance Coin
Just like other evolving cryptocurrencies, the Binance Coin offers several uses that go beyond the Binance exchange, such as
- Trading : Binance Coin can be traded for other cryptocurrencies on various exchanges, depending on the restrictions set by the exchange.
- Transaction fees on the Binance Exchange: BNB can be used to pay for transactions on the Binance Exchange, and users also receive a discount for doing so.
- Credit card payments: BNB can be the form of payment for crypto credit card bills on Crypto.com.
- Payment processing: Merchants can offer BNB as a means of payment for customers, offering more flexibility in payment methods.
- Booking travel arrangements: BNB can be used to book hotels and flights on select websites.
- Entertainment: From paying for virtual gifts to buying lottery tickets, BNB serves several purposes in the entertainment space.
- Investment: Several platforms allow investors to invest in stocks, ETFs, and other assets using Binance Coin.
- Loans and transfers: BNB can be used as collateral for loans on certain platforms. Also, there are apps that allow users to split bills and pay friends and family through Binance Coin.
Here’s a brief breakdown of how BNB tokens were initially distributed:
- Founding team: 40% (80 million BNB)
- Angel investors: 10% (20 million BNB)
- Public sale: 50% (100 million BNB)
All of the 100 million BNB tokens available for public sale were sold during the ICO at 15 cents per token. Therefore, Binance raised a total of US$15 million in bitcoin and ethereum.
BNB Burning
As mentioned in the Binance whitepaper, every quarter, Binance uses 20% of its profits to buy back and burn Binance Coins, destroying them completely.
Binance will continue to perform quarterly burns until it buys back and destroys 100 million Binance coins – 50% of the total supply. The practice ensures that the supply of Binance Coin remains finite, making it scarce and more valuable.
The reason for BnB to rise is because this is the truth of demand and supply. Because you need to use BnB in exchange.
What will be fueling this move? I'll give you my top reasons:
DeFi projects are suffering from high fees on Ethereum, and Binance is about to take over. If Binance succeeds in its mission, BNB upside is imminent.
In April 2020, Binance introduced its crypto debit card.
What does Binance Coin have to do with the Binance card? BNB is one of only two cryptos currently available on the card, the other one being Bitcoin.
Another feature that many investors appreciate is BNB's quarterly burn. In short, every quarter, 20% of profits are spent on buying back and subsequently burn the tokens.
Final words
The billionaire Canadian founder and CEO of Binance, Changpeng Zhao, is bullish about crypto, has experienced persecution when his father was exiled from China for being a bourgeois intellectual, and hence has a healthy disrespect for Big Brother.
Zhao will continue breaking things; growth indices, trading performance. It's what he does. He's smart, young and angry. And he knows the Chinese adage that the riches are not in crypto mines, but in selling the crypto shovels (which is what the exchanges are all about).
I'd be surprised if Binance wasn't in the four digits by 2022.
At present, the price of Binance Coin has skyrocketed and has entered a temporary adjustment phase, but it is expected to continue to grow in the long run from the next point .
The adoption of BNB seems to be steadily growing and shows no signs of stopping. The moment when BNB will go beyond the parent exchange is around the corner, and then the most interesting part of its story is just about to begin.
CryptoWonderland
Link for Binance exchange, to trade crypto:
https://accounts.binance.me/en/register?ref=70392873
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https://revuto.com/invite/dani7a96ab
