In the case of Binance, the crypto exchange began the program in late 2017 and has so far burned over 38 million tokens via its quarterly burn to date. The crypto exchange has in mind to destroy up to 100 million BNB tokens through its quarterly burns, accounting for 50% of its circulating supply. According to the whitepaper, the exchange would use 20% of quarterly profits to buy back outstanding tokens and burn them. So far, the exchange has undertaken 16 coin burns resulting in the removal of 31,862,964 BNB tokens from circulation.
BNB Price(BNB)
Despite these hacks, users return to Binance for its low fees and the abundance of lucrative meme coins in its ecosystem. Since 2013, Changpeng Zhao has been actively involved with blockchain technology and cryptocurrencies. He became head of development at Blockchain, and in 2015 he founded BijieTech. In 2017, Zhao officially launched Binance, and he has been the CEO of the company ever since. Now that you have acquired your BNB tokens, you may be looking for a safe place to store them.
FAQs about Binance Coin
Unlike PoS, the Binance blockchain does not support smart contract functionalities. In contrast, the Bitcoin blockchain is secured by the proof-of-work (PoW) consensus, which is far more limited and consumes large amounts of electrical and computing power. There is an initial maximum supply of 200,000,000 BNB coins, of which 168,137,036 are currently in circulation as of September 2021. In total, 38,683,447.66 BNB tokens have been destroyed, reducing its initial 200M supply by 19.34%. This has helped Binance overcome several exploits of protocols on BSC, such as a $200M exploit of Pancake Bunny and several hacks of Cream Finance.
However, there was a big possibility that the value of BNB would fall once the discount period expired after 4 years. To counter this undesirable event, Binance adopted the concept of coin burning within their whitepaper, committing to reduce the total BNB supply by 50% or 100 million tokens. Binance is promoting the adoption of the BNB token in the hopes that it will drive customer loyalty.
We are not discouraging or generalizing when we say unofficial sources of BNB are bad places to get the tokens, but we encourage you to research before choosing which platform to use. In addition, the team devised a discount plan for token holders and early platform users in order to encourage participation in the ICO. The plan represented a graduated scale with a larger discount offered in the first year of operation and less in the fourth year. The ICO was held within three weeks, starting on July 1st and ending on the 21st. According to ICO documents, the BNB tokens were scheduled for sale in three phases, each lasting a week.
Normally, we would recommend storing all your long-term digital asset investments in a hardware wallet such as Trezor or Ledger for increased safety. Binance Coin is one of the most successful utility tokens with a growing use case list. Not to mention that it has seen a meteoric rise in its value since its launch in July 2017. The next best way to buy BNB is to use the official Binance cryptocurrency exchange. If you do not currently use Trust Wallet, however, you will need to download the app and create a new wallet before you can use it.
If you have more trade requests than your matching software can handle, orders will be delayed. With the popularity of Bitcoin and altcoins right now, users are submitting millions of trade requests per minute on the most popular exchanges. Delayed trades might be the difference between capitalizing on an investment opportunity and missing it. When trading cryptocurrencies on the Binance Exchange, each trade will incur a standard fee of 0.1% (trading fees are determined by your monthly trading volume and BNB holdings). You can either pay the trading fees using the assets you are trading, or you can pay for them with BNB. Launched in July 2017, Binance is the biggest cryptocurrency exchange globally based on daily trading volume.
If you believe that the company is poised to grow even further, this will be reflected in the BNB’s price, allowing you to sell it later for a much higher price than when you bought it. As of May 2024, the Binance Smart Chain processed as many as 3.5 million daily transactions, more than double Ethereum’s all-time high. However, this is down from a record of more than 32.6 million daily transactions reached in December 2023. Our global Community Support team is at the ready 24/7 in 11 different languages.
Binance Coin (BNB) Uses, Support, and Market Cap
One can also use BNB to invest in certain ICOs listed through Binance’s Launchpad program. New cryptocurrencies are listed on the Binance exchange, which provides a seamless marketplace for trading in a variety of established and new virtual tokens. On May 11, 2024, BNB was the fourth-largest cryptocurrency by market capitalization, behind only Bitcoin, Ethereum, and USD Tether. On Nov. 21, 2023, Binance and its CEO Changpeng Zhao pleaded guilty to money laundering charges. Binance agreed to pay $4.3 billion to settle charges; Changpeng Zhao stepped down as CEO and agreed to pay $50 million toward the settlement.
- In contrast, the Bitcoin blockchain is secured by the proof-of-work (PoW) consensus, which is far more limited and consumes large amounts of electrical and computing power.
- There are many uses for Binance Coin, but let’s first start with how and why it was created.
- Within the crypto industry, a coin burn is a deflationary mechanism that is used to permanently remove coins from circulation.
What Is a Binance Coin (BNB) and What Is It For?
To learn more about the Binance exchange, be sure to read our comprehensive Binance review. This makes BNB unique among most new coins since it already has a practical use case. Most investors will get the highest ROI out of cashing in should you cover your smartphone camera on the BNB rebate.
Global Prices
The fewer coins there are in circulation, the higher their perceived value, which will increase their demand and consequently their price. This guide takes a deep dive into the world of Binance Coin (BNB), the native digital asset of the world’s leading cryptocurrency exchange Binance. We discuss its history, benefits, uses, how to buy and how to store the coin. All of the information that a crypto investor would need before buying their first BNB coins. The total supply is limited to 200 million BNB, after which no more coins will be created.
It has since been overtaken by the Bitmex exchange which trades almost three times in volume. Bitmex, however, is an unregulated exchange which also allows margin trading. This is in direct opposition to Binance which is regulated and does not allow users to borrow funds and leverage their trades. The Binance blockchain is built using Ethereum and uses BNB as its native token. It was launched during an initial coin offering (ICO) in July 2017 and has a strict maximum of 200 million BNB tokens. The ICO offered 10%, or 20 million, BNB tokens to angel investors, 40%, or 80 million, tokens to the founding team, and the remaining 50%, or 100 million, to the various participants.
To the left of that button is a space to fill in the amount of money you wish to spend. In the Binance ecosystem, another digital asset exists called the Binance Dollar or Binance USD (BUSD). Even though they are both issued by the Binance crypto exchange, they are fundamentally distinct and serve different functions.
If you want to know more about coin burns, and why BNBs are being permanently destroyed, check out What Is a Coin Burn?. The first mechanism consists of burning a portion of the tokens spent on transaction fees on the BNB Chain, and the second is its quarterly BNB burning events. Within the crypto industry, a coin burn is a deflationary mechanism that is used to permanently remove coins from circulation.