Binance Coin Cryptocurrency Review
What is Binance Coin?
Binance coin is a crypto coin used in one of the biggest crypto exchanges Biancne. This crypto-exchange ICO in July 2017 raised approximately $15 million.
- BNB token is an ERC20 token, built on Ethereum.
- Total supply stands on $200 million BNB, after which no more tokens will be created.
- You can pay your fees in BNB on Binance and get a rebate. In the first year, you receive a 50% discount paying with BNB.
- You can only buy BNB on Biancne and EtherDelta.
Binance is a frequently buzzed word in the world of cryptocurrency. Binance Coin, shortly called the BNB token, is the cryptocurrency of this renowned platform. Binance runs on the blockchain of Ethereum and BNB token closely follows the ERC20 standard.
Little about Binance
Before digging deep into BNB token, one should have sufficient knowledge about Binance trading platform for better understanding. Being originated a few days back in the middle of 2017, Binance has achieved extreme popularity and has gained positive feedback from all corners. Per second, it can process about 1.4 million orders. It has become possible because of its proprietary trading engine which simplifies the difficulties other exchanges usually face. To keep pace with the demands of time, it is undergoing continuous development. It also remains one step ahead of other coins in the competition due to its low trading charges and high volatility.
Price of BNB Coin
At the advent of May 2018, each BNB coin was worth $14.010 USD and it indicates the increase in the value of 8,921.25 percent considering the issue price of the token at $0.1553. Dispensation of Binance took place on 8th July 2017. Now it is easily understandable that how much the price has gone north in less than a single year. During the same time, the market cap was about $1,597,718,473. About 114,041,290 BNB coins were circulated in the market when the maximum amount of supply was about $194,972,068 coins. Initially, the limit of total supply was fixed at 200 million Binance Coins.
This is completely a unique price maintenance protocol of Binance. The whitepaper provides a primary idea about the process. In a nutshell, Binance plans to utilize 20 percent of the yield from each quarter to purchase back BNB token in order to burn them. This phenomenon will be continued until the amount of token supply reaches half of the total amount fixed initially i.e until the remaining amount reaches 100 million. The records of those back transactions will be projected in the blockchain to maintain transparency.
Last time, token-burning took place on 15th April 2018 burning about 2,220,314 BNB coins. Most possibly it will occur again in July. Binance goes through such a strategic protocol in order to maintain a consistent and handsome value considering that the demand does not fluctuate. The outcome of this phenomenon is clearly visible if one carefully observes the difference in price before and after the burning.
Purpose of BNB
Binance Coin acts as the fuel that powers up the entire ecosystem. Traders of this exchange platform can discharge their trading fees by BNB tokens and can be offered even 50% discount. BNB has extended its functionality in other platforms too and the credit goes to the partnerships. Monaco, Uplive and many other platforms allow BNB for various purposes.
Introduction to Binance Chain
Binance is planning to construct a decentralized cryptocurrency exchange platform namely Binance Chain. The platform will employ BNB token which will enhance both the demand and value of BNB. This public blockchain will focus on relocating blockchain assets and general trading.
Binance has already caught the eyes of the investors within a very short period. Hopefully, it will continue to go up with the inauguration of Binance Chain.