Binance Coin (BNB) –With the ever increasing and justified rate of scepticism ravaging the minds of potential investors in the crypto world, it is imperative for both old and new lovers of crypto trading to be current, as regards development in the crypto market. One of such development, a major one at that, is the Binance Coin (BNB).
Conceptualization And Actual Creation Of Binance Coin (BNB)
Binance coin was launched in July, 2017, during an initial coin offering (ICO). During the ICO, 10 percent, or 20 million BNB tokens was offered to the angel investors, 20 percent or 40 million was offered to the founding teams, while the remaining half, 50 percent or 100 million was offered to the various participants in the ICO process.
The intention was to use half of the funds raised during the ICO process for Binance branding and marketing while one-third of the funds was to go into the building of the Binance platform And to perform all the necessary upgrades to the Binance system.
Binance Coin (BNB) Progress And Prospect
Binance Coin (BNB) is an ERC20 token, a digital currency that is issued by Binance exchange stage, the latter being an exchange stage that is used only in the exchange of cryptographic forms of money. The trading symbol of the coin is also the BNB symbol.
With an ERC20 standard, Binance coin runs on the Ethereum blockchain with a maximum strict limit of 200 million BNB tokens.
BNB for now, is simply a utility token that helps its owners with the payment of lower trading fees on Binance. This is not all that there is and will be to Binance coin, however, since Binance is planning on enabling margin interests to be paid with BNB, following the launching of margin trading.
As the ambitious organization that they are, it will also come as little surprise that Binance are also planning to build a blockchain whose speciality will be in decentralized exchanges with BNB being the fuel for the platform.
The implication of this is that BNB will soon be used for the payment of transactions on the blockchain, same way ether is used in the payment of transactions on Ethereum. The aforementioned could greatly increase the demand for BNB.
Binance Coin (BNB) Dependability And Technicalities
In the first year of transaction, there is a 50 percent discount on transaction fees, this discount percentage in turn, halves each fiscal year.
This means that the second year discount becomes 25 percent, the third year discount percentage is also halved, making it 12.5 percent, the fourth year’s discount is 6.25%, and on the fifth year onwards, the discount ends.
Binance coin has gained the supports of some partnerships that has help in boosting its use and spread. One of this partnerships is with Uplive, an Asia based premier high end live video streaming platform that sells virtual gifts for BNB tokens to an upward of about 20 million user base.
Apart from uplive, Binance coin has also gained the support of other various platforms including the pioneering payments, the mobile App, cryptocurrency platform, and the visa debit card among other partners.
It is worthy of note also, to know that the Binance platform has a repurchase plan.
Under the repurchase plan, it will use 20 percent of its profits to buy back BNB tokens, and destroy them until a maximum of 50 percent, equalling 100 million BNB tokens are bought back.
This action will ensure that only 100million BNB tokens are in circulation. This forced reduction in the amount of BNB tokens in circulation ensures its maintenance of substantial value.
To that end, it is exciting to note that on April, 2018, the Binance team announced the complete destruction or burn of over 2 million BNB tokens, an equivalent of about 30 million dollars.
Becoming An Investor
As you might have envisaged, Binance Coin (BNB) can be bought using a wide range of other cryptocurrencies. They include Bitcoin, Etherium and other cryptocurrencies
Summary
In a nut shell, Binance Coin (BNB) is the typical coin or token of the Binance exchange. It was used for funding the exchange platform itself, and it offers to its users, beautiful and useful features. They include the fact that it:
- Can be traded on the Binance platform for other coins
- Will in the end, become a native coin of the decentralized Binance Exchange
- Offers discounts to its users when it is used in the payment of Binance fees
