All about BNB

What Is BNB?
Launched in July 2017, Binance is the biggest cryptocurrency exchange globally based on daily trading volume. Binance aims to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind Binance’s name is to show this new paradigm in global finance — Binary Finance, or Binance.

Aside from being the largest cryptocurrency exchange globally, Binance has launched a whole ecosystem of functionalities for its users. The Binance network includes the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet and Research projects, which all employ the powers of blockchain technology to bring new-age finance to the world. BNB is an integral part of the successful functioning of many of the Binance sub-projects.

Binance Coin (BNB) is the cryptocurrency of Binance, a major cryptocurrency exchange founded by Changpeng Zhao. It began as an ERC-20 token on the Ethereum platform but now operates on its own blockchain. The total supply started at 200,000,000 coins but decreases over time through regular coin burn events, which help maintain the value of BNB.

BNB serves multiple purposes within the Binance platform. Primarily, it acts as a native coin for trading on Binance, allowing users to pay transaction fees at a discounted rate. Binance commits 20% of its profits each year to repurchase and burn BNB, further reducing the supply. BNB also has various applications, including being used for trading on Binance DEX, participating in crypto staking, engaging in Initial Coin Offerings (ICOs), and accessing diverse financial services such as loans and insurance.

The Binance ecosystem consists of several components that enhance the utility of BNB. This includes the main Binance cryptocurrency exchange for trading various coins, Binance Launchpad for new projects and ICOs, Binance Academy for educational purposes regarding cryptocurrency, Binance Charity Foundation focusing on social causes, and Binance Research that conducts detailed studies on cryptocurrencies.

Investors find Binance Coin appealing due to its low trading fees, staking capabilities, and broad range of financial services. However, it also has certain drawbacks, such as being highly reliant on Binance’s performance and the fact that a large portion of BNB’s supply is held by the company, which centralizes the platform. Additionally, it faces competition from decentralized exchanges that allow direct trading without intermediaries.

Looking ahead, price forecasts suggest a minimum price of €2,137. 80 by 2026 and up to €7,082. 37 by 2031. The current market data indicates a recent price of €692. 24 with a market capitalization of €101 billion and 145. 9 million BNB in circulation. Trading digital currencies entails significant risk, so investors should approach with caution.

Who Are the Founders of BNB?
Changpeng Zhao is the founder and CEO of Binance. In 2001, Zhao joined Bloomberg as head of tradebook futures development. He spent four years with the company and later joined Fusion Systems as a partner.

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.

He Yi is a co-founder and chief marketing officer at Binance. She started her career as a TV anchor and presenter on China Travel TV in 2012. Later, in 2014, Yi co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time. In 2017, she joined forces with Changpeng Zhao, and together they created the largest crypto exchange globally — Binance.

What Makes BNB Unique?
Binance is a unique ecosystem of decentralized, blockchain-based networks. The company has grown to be the leading crypto exchange in a number of countries, and their side organizations are attracting significant interest as well.

One of the biggest competitive advantages Binance has is its drive for development. While the company started only as a crypto exchange back in 2017, today, Binance has spread its services among numerous different spheres. According to the company website, its mission is to become the infrastructure services provider for the entire blockchain ecosystem.

Since launching the BNB, the exchange has also benefited from increased investor interest in the coin. BNB went through a significant price increase at the beginning of 2021, which has put it on the map of enterprise investors.

Measures like BEP-95 have upgraded the already deflationary tokenomics to make BNB even more deflationary. Following the proposal, gas fees on Binance Smart Chain have become even lower, as the network burns a part of the fees to decentralize further. The proposal was modeled after Ethereum’s famous EIP-1559.

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. Despite these hacks, users return to Binance for its low fees and the abundance of lucrative meme coins in its ecosystem.

What Is BNB’s Auto Burn?
Within the crypto industry, a coin burn is a deflationary mechanism that is used to permanently remove coins from circulation. Most cryptocurrency projects, including Binance, periodically burn coins to sustain the value of their digital asset and create a deflationary effect.

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.

BNB utilizes two coin-burning mechanisms. 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.

Previously, the quarterly burn event was based on revenue generated from the Binance centralized exchange. But under the new BNB Auto-Burn program, the number of tokens to be burned is calculated using a formula based on the total number of blocks produced on the Binance Smart Chain and BNB’s average dollar-denominated price during the quarter.

As of July 2022, Binance had completed 20 BNB coin burn events. In total, 38,683,447.66 BNB tokens have been destroyed, reducing its initial 200M supply by 19.34%.

How Many BNB Are There in Circulation?
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.

Binance conducts quarterly burning of the BNB supply, with the goal of reducing the total supply by half — or 100,000,000 BNB. On July 18, 2021, it conducted its 16th quarterly burning, which was worth $390 million in BNB price at the time of burning. However, that was not the most expensive burn — on April 16, 2021, the exchange burned nearly $600 million worth, in BNB price at the time of burning.

According to the Binance whitepaper, exactly half of the maximum supply of BNB coins was allocated towards the initial coin offering (ICO) and public sale of the coin. The ICO was held in July 2017 shortly after the exchange launched, and saw Binance raise $15 million in funding, with BNB price at $0.10 during the ICO. Taking BNB price today, that represents an almost 4200X return on investment (ROI). Another 40% of the total supply, or around 80,000,000 BNB coins, was distributed among the founding members and team. Finally, the remaining 10% of the maximum supply was split among angel investors.

How Is the BNB Network Secured?
Initially, the BNB started as a traditional ERC-20 token on the Ethereum blockchain. Later on, the company introduced its own blockchain, and the tokens started being issued from the Binance blockchain, secured by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism.

While ERC-20 tokens rely on the proof-of-stake (PoS) consensus, which allows them to be extremely scalable, and allows for the creation of smart contracts. 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.

Where Can You Buy BNB?
As the dedicated utility token of the Binance exchange, the most straightforward way to acquire BNB coins would be to purchase them through Binance. The original exchange supports the largest variety of trading pairs with BNB, and it also has the best trading rates for the coin. Since the launch of Play2Earn games, interest in the BNB to PHP price has increased substantially.

To check BNB price live in the fiat currency of your choice, you can use CoinMarketCap’s converter feature directly on the BNB currency page. Alternatively, use the dedicated exchange rate converter page. Popular BNB price pairs include: BNB/USD, BNB/GBP, BNB/AUD, BNB/CNY, BNB/JPY and BNB/EUR.

Title: Overview of Binance Coin (BNB)

Introduction:
Binance Coin (BNB) is the cryptocurrency associated with Binance, one of the largest cryptocurrency exchanges globally. This summary provides essential information about its features, applications, and market dynamics.

Key Points:

• Basic Information:
• Abbreviation: BNB
• Category: Utility token
• Founder: Changpeng Zhao
• Blockchain: Binance Chain
• Launch Date: July 2017
• What is Binance Coin?
• BNB is designed to facilitate trading on the Binance platform and was originally launched as an ERC-20 token on Ethereum before migrating to its own blockchain.
• The initial supply was 200 million coins, and through coin burn events, the supply decreases to help stabilize value.
• Distinctive Features:

1. Native Token: Specifically created for Binance’s operations.
2. Transaction Fees: Users can pay trading fees in BNB, which lowers their overall trading costs.
3. Buyback and Burn Policy: Binance uses 20% of its annual profits to repurchase and burn BNB, reducing supply and potentially increasing value.
4. Diverse Applications: BNB can be used for trading fees, discounts, and is accepted by various merchants.
5. Growing Support: The expansion of Binance as an exchange aids BNB’s popularity and value.

• How Binance Coin Works:
• BNB utilizes smart contracts to ensure secure transactions, operating on the Binance Chain with a Delegated Proof of Stake (DPoS) algorithm for efficiency.
• It supports a decentralized application (DApp) for cryptocurrency trading and funding projects.
• Applications of Binance Coin:
• Used for trading on the Binance DEX and participating in crypto staking.
• Provides access to financial services, including loans and crowdfunding through Initial Coin Offerings (ICOs).
• Binance Ecosystem:
• Key components include:
• Binance Cryptocurrency Exchange: Main platform for trading and discounts.
• Binance Launchpad: Hosts new projects and ICOs.
• Binance Academy: Educational platform for crypto and blockchain.
• Binance Charity Foundation: Focuses on social welfare through initiatives.
• Binance Research: Conducts independent studies on crypto projects.
• Advantages of Binance Coin:
• Low trading fees and discounts.
• Staking opportunities.
• Access to diverse financial services.
• Strong backing from one of the largest exchanges.
• Drawbacks of Binance Coin:
• Performance highly reliant on Binance.
• Centralization concerns, with over 80% of BNB’s supply held by Binance.
• Competition from decentralized exchanges.

Conclusion:
Binance Coin (BNB) serves as a critical asset within the Binance ecosystem, offering many benefits as well as some challenges. Prospective investors should consider both the advantages and risks before engaging. Market trends forecast substantial growth for BNB in the coming years.