What is BNB? Since its inception, BNB has had a strong and impressive development. Initially, it was only used as a payment tool on cryptocurrency exchanges, but then it transformed strongly with the formation of Binance Smart Chain – an extremely complex and challenging blockchain ecosystem. This shows that BNB has become a big name in the fiercely competitive cryptocurrency market today.
What is BNB?
BNB, short for Binance Coin, is a cryptocurrency issued through an initial coin offering (ICO) by the popular Binance exchange in July 2017. Initially, BNB was built on the Ethereum Blockchain platform and complied with the ERC-20 standard from 2017 to 2019. It later became the official coin for the Binance exchange ecosystem along with Binance Chain, identified by the BEP-2 format. This development marked an important shift in expanding the utility and application of BNB in the cryptocurrency trading community.
Since 2020, Binance has switched to using Binance Smart Chain (BSC), a blockchain built on Ethereum’s EVM virtual machine. BSC (BEP-20) has replaced Binance Chain (BEP-2) and has become the center for BNB development. In a new step, in February 2022, Binance and CEO CZ announced plans to develop MetaFi. This also means that BNB will switch to being the gas fee for BNB Chain, named Build and Build instead of Binance Coin as before.
Binance Highlights
Binance stands out for the success of its diverse ecosystem, centered on the Binance exchange and Binance Smart Chain (BSC):
Binance Exchange
Binance is not just a cryptocurrency exchange but also provides a complete and rich financial ecosystem with many functions. Here, users can perform Spot, Margin, Future, IEO transactions, as well as participate in Saving, P2P, lending, securities, payment products, or explore the NFT market through the Binance NFT Marketplace platform. The Binance exchange interface is designed to bring the most optimal and convenient experience to users.
Binance Smart Chain (BSC)
BSC serves as a decentralized environment where developers can efficiently develop and deploy their applications on the blockchain network. With the advantage of being built on Ethereum’s EVM platform, BSC helps both developers and users to easily transfer and manage their assets conveniently.
Binance Smart Chain (BSC) is not inferior to DeFi on Ethereum, on the contrary, it has attracted strong attention with a total TVL of $ 25 billion and more than 450 diverse projects:
- AMM Liquidity: Pancakeswap, Bakeryswap, and Ellipsis Finance have created solutions for providing liquidity and diversified trading on BSC.
- Lending: Venus, Alpha Finance, and Alpaca Finance have provided solutions for borrowing and lending cryptocurrencies on BSC.
- Launchpad: Pancakeswap, Polkastarter, and KickPad are Launchpad platforms on BSC, which help new projects launch and raise funds conveniently.
- Yield Aggregator: Beefy Finance, PancakeBunny, and Autofarm focus on optimizing profitability from different income sources on BSC.
- NFT: Bakeryswap, Dego Finance, and Treasureland are prominent NFT projects.
Information about BNB coin
Specifications
- Ticker: BNB.
- Blockchain: Binance Chain Binance Smart Chain.
- Consensus: Tendermint.
- Block Time: 1 second.
- Token Type: Utility.
- Algorithm: Delegated Byzantine Fault Tolerance (dBFT).
- Initial Supply: 200,000,000 BNB.
- Circulating Supply: 153,432,897 BNB.
- Total Supply: 170,532,785 BNB.
How is BNB coin distributed?
The total supply of the original BNB coin is 200,000,000 BNB, distributed as follows:
- ICO: 50% – 100,000,000 BNB.
- Binance Team: 40% – 80,000,000 BNB.
- Angel Investors: 10% – 20,000,000 BNB.
However, Binance has applied a coin burning mechanism, currently the total supply is only 170,532,785 BNB and will continue to burn in the future. Coin burning helps reduce the total supply, creates scarcity and stimulates buying demand, thereby supporting the strong growth of BNB.
This change has been evident in the explosive growth of BNB. Since the beginning of 2021, the price of BNB has increased from $40 to a peak of $670 on May 11, 2021 (+1,675%), and currently BNB is maintaining at over $300 (+750%).
BNB Fundraising
Binance has conducted several rounds of fundraising for BNB through the Initial Coin Offering (ICO) model. Over a period of 3 weeks from July 1, 2017, Binance successfully raised $15 million from investors through the ICO. The value of BNB has steadily increased according to the pre-determined development plan.
BNB Issuance
- ICO No lockup. Investors can receive BNB on the 5th day after the ICO ends.
- Angel Investments are not locked. Angel investors will receive their full amount of BNB coins immediately when the ICO ends.
- Binance Team The amount of BNB coins held by the Binance team will be distributed over 5 years from the end of the ICO. Each payment, they will receive 20% (equivalent to 16,000,000 BNB).
BNB Use Case
Binance Exchange
- Listing Fees: BNB is used to pay listing fees for projects that want to be listed on Binance. All proceeds from this listing fee will be donated 100% to Binance Charity, starting from October 8, 2018.
- Exchange Fees: BNB helps reduce transaction fees (maker taker) when used on the Binance exchange, creating benefits for users. Using BNB to pay fees helps reduce the pressure of transaction costs.
- VIP Discount Fees: BNB is also used to tier VIP accounts on Binance. Owning and using BNB can help users receive preferential transaction fees in Binance trading services, including margin trading.
Binance DEX
- Proposal Fees: Projects wishing to list on Binance DEX must submit 1000 BNB with their proposal. This amount will be refunded if the proposal is accepted and will not be returned if it is not approved to avoid spam.
- Listing Fees: Once accepted, the project needs to pay 1000 BNB to be listed on Binance DEX.
- Binance Launchpad: Investors need to hold BNB to participate in investing in potential projects via Binance Launchpad. Once they have an investment, BNB is used to purchase tokens of that project.
- Binance Charity: BNB is used to donate to charity programs through Binance’s Binance Charity platform.
- Payments: BNB can be used as a payment unit at stores and partners that accept payments in BNB.
- Binance Smart Chain (BSC): is one of the biggest use cases, helping BNB experience significant growth. BNB, similar to ETH on Ethereum, is used to pay transaction fees and is the main currency in the Binance Smart Chain (BSC) ecosystem. BNB has been heavily integrated into Binance Smart Chain’s $25 billion DeFi ecosystem, from AMM DEX to Lending and Yield Aggregator.
BNB’s importance in Pancakeswap’s liquidity pairs, its use as collateral in lending platforms like Venus, and its role as a payment currency in the Binance NFT Marketplace are clear demonstrations of BNB’s power and flexibility in shaping and driving the development of Binance Smart Chain.
How to own BNB coin
Currently, BNB is listed for trading on a variety of popular and trusted exchanges such as Binance, FTX, Gate, Kucoin, Bithumb. At the same time, BNB can also be traded on decentralized exchanges (DEX) such as Pancakeswap, Bakeryswap, and Binance DEX.
However, it is worth noting that Binance is still the largest and most liquid exchange for BNB. This makes it easier for users to buy, sell and invest in this cryptocurrency.
Where to store BNB coin
Users can safely store Binance Coin (BNB) in a variety of wallets, including:
- Exchange wallet
- Cold wallets like Ledger and Trezor, offer extremely high levels of security and absolute safety.
- E-wallets such as Math Wallet, Trust Wallet, HyperPay, Safepal, Binance Chain Wallet, Atomic Wallet,…
Some similar projects
Today, BNB is not only an exchange but also a symbol representing a blockchain network. Here are some similar projects to help you have a clearer view:
Trading Platform:
- Binance (BNB)
- Huobi (HT)
- Okex (OKB)
- FTX (FTT)
Blockchain Network:
- Binance Smart Chain (BNB)
- Ethereum (ETH)
- Polkadot (DOT)
- Solana (SOL)
Project Team
Currently, Binance is the largest exchange in the world with a team spread across the globe. The two most important figures at the moment are ChangPeng Zhao and Yi He (nicknamed Uncle CZ).
- ChangPeng Zhao: founder and CEO, regularly interacts with the community via Twitter (@cz_binance).
- Yi He, who holds the position of COO, is also one of the key leaders of Binance.
Prior to founding Binance, both CZ and Yi He have extensive experience in the blockchain and cryptocurrency industry, having been colleagues at OKCoin before.
Investor
Initially, Binance had 14 Angel investors, including funds such as AU21 Capital, Dragon Gateway, along with individual investors such as Chris McCann, Edith Yeung, Phil Chen, and many others. The majority of the investment capital was raised through an ICO from the community.
Conclude
Through the above article, we hope you have somewhat understood what BNB is and how BNB will develop in the future. Please follow us. And you, what do you think about the potential of BNB and what is your investment opinion? Please comment below to share.
