What is Binance Coin (BNB)? Complete set of BNB of Binance exchange

• Things to know about Binance Coin
• What is Binance Coin?
• Development roadmap and new updates
• Development team, investors
• Similar projects
• Detailed information about BNB
• Some information about BNB
• Allocate BNB
• BNB . Release Schedule
• Functions of BNB
• Where to buy BNB?
• Where to store BNB?
• Potential of BNB
• summary

Binance Coin was launched in 2017 and so far it has achieved certain success. BNB is not only an exchange coin, but it also plays a very important role in the DeFi space, specifically the ecosystem of Binance Smart Chain . 

In the framework of this article, TraderH4 team provides readers with the highlights of Binance Coin and detailed information about BNB Tokenomics . From there, readers will have an overview of BNB and can self-assess its growth potential in the future. 

Things to know about Binance Coin

What is Binance Coin?

Binance Coin (BNB) is an exchange coin, released in July 2021, through an ICO by the Binance exchange. At that time, it played an important role in the ecosystem of Binance exchange and Binance Chain (BEP-2).

You may be interested : Binance Chain and Binance Smart Chain will merge into the BNB Chain ecosystem

In the initial phase of launch, Binance Coin was built on the Ethereum blockchain and carried the ERC-20 standard. The issue price at that time was 1 ETH = 2,700 BNB or 1 BTC = 20,000 BNB, with the value of BNB being 0.15 USD.

Starting in 2020, Binance has switched to using Binance Smart Chain as the main blockchain platform. It will focus on the development of Binance Smart Chain rather than Binance Chain, and BNB will have an additional standard of BEP-20. Binance Smart Chain is a smart contract platform built on Ethereum's EVM virtual machine.

As of February 15, 2022, the Binance development team and founder – Mr. Changpeng Zhao announced that they will launch BNB Chain for MetaFi development and that Binance Coin will be renamed Build & Build. This will also be the blockchain that uses BNB as a means of paying gas fees.

This change shows that Binance wants to separate BNB from the Binance exchange ecosystem. The goal is to help BNB grow further in the future, beyond the limit of an exchange coin. 

In a more understandable way, Binance changed the name of Binance Coin to Build & Build, in order to facilitate Binance to develop beyond the shadow of Binance's exchange coin and the BSC ecosystem.

Development roadmap and new updates

In addition to continuing to expand the Binance Smart Chain ecosystem and growing the Binance exchange, the platform is also encroaching on the cross-chain Financial Infrastructure piece. 

In order to achieve this goal, in the coming time, Binance will focus on a number of activities such as:

• First, Binance will strengthen infrastructure and critical services
• In addition, Binance will strengthen the security of DeFi infrastructures
• Following that, the platform will be expanded under the Mass Adoption mechanism
• At the same time, Binance will encourage and motivate developers to develop on its blockchain.
• Some of the areas that Binance will focus on developing are Aggregation & Integration, Algorithmic, Cross-chain & Multi-chain , Synthetic, Gamification, NFT...

Development team, investors

Development team

Binance is the largest exchange in the world with the two main leaders being ChangPeng Zhao (CZ) and Yi He.

• ChangPeng Zhao currently holds the position of Founder & CEO of Binance. He regularly interacts with the community through his personal Twitter account .
• Yi He holds the position of CMO, but does not interact as much with the community as ChangPeng Zhao.

ChangPeng Zhao and Yi He have been active in the Crypto market and blockchain field for quite some time before founding Binance. They were colleagues at OKCoin – one of the largest cryptocurrency exchanges at the time.

Investors

Binance backers have a total of 14 angel investors and most of them participate through ICO. AU21 Capital, Dragon Gateway are typical investment funds of Binance and individual investors are Chris McCann, Edith Yeung, Phil Chen…

Similar projects

Some similar projects include:

• Exchanges: Huobi (HT), OKX (OKB), FTX (FTT)…
• Blockchain: Ethereum (ETH), Solana (SOL), NEAR Protocol (NEAR)…

Detailed information about BNB

Some information about BNB

• Ticker: BNB
• Blockchain: Binance Chain & Binance Smart Chain
• Algorithm: Delegated Byzantine Fault Tolerance (dBFT)
• Token Type: Utility
• Max Supply: 165.116,760 BNB (May 11, 2022)
• Total Supply: 163,276,975 BNB (May 11, 2022)
• Circulating Supply: 163,276,974 BNB (May 11, 2022)

Allocate BNB

Initially BNB had a total supply of 200,000,000 BNB and was distributed as follows:

• ICO: 50%, equivalent to 100,000,000 BNB
• Binance Team: 40%, equivalent to 80,000,000 BNB
• Angel Investors: 10%, equivalent to 20,000,000 BNB

The design of BNB's Tokenomics model has a coin burning mechanism, so currently the total supply of BNB is 163,276,975 BNB. In the future, this number will continue to decrease significantly as Binance will periodically burn coins. The coin burning mechanism will narrow the circulating supply, it will make BNB more scarce, create demand and help grow stronger. 

BNB . Release Schedule

Binance will distribute BNB according to the following schedule:

• ICO: The number of coins for ICO will not be locked, investors receive BNB after 5 days from the time the ICO ends.
• Angel Investors: The coins of this group will also not be locked and receive enough BNB after the ICO ends.
• Binance Team: The amount of BNB held by the Binance team will be paid within 5 years from the time of the ICO end and will be 20% of each distribution.

Functions of BNB

Binance Exchange

Binance Listing Fee: According to the information mentioned in the Whitepaper , projects that want to list their tokens must use BNB to pay the listing fee. The specific amount to be able to list tokens on Binance is not announced by the project team. However, the proceeds from this will be 100% donated to Binance Charity, starting October 8, 2018.

Trading Fees on Binance: If Makers and Takers use BNB to pay for trading fees, they will receive a discount on trading fees on Binance. Specifically:

VIP Discount Fee: Binance also decentralizes VIP accounts so that investors can enjoy the most favorable transaction fees in trading services on Binance.

Binance DEX

Binance DEX Listing Proposal Fee: To be listed on Binance DEX , projects will have to deposit 1,000 BNB, along with a listing proposal. If the project is approved by Binance DEX, these 1,000 BNB will be refunded. If not approved, then the project will lose this money. 

Listing Fee: After Binance DEX agrees to list the project, the project needs to deposit 1,000 BNB as a listing fee on Binance DEX.

Binance Launchpad

BNB holders can participate in purchasing potential project tokens through Binance Launchpad . In addition, BNB is used as a means of payment when purchasing project tokens on Binance Launchpad.

Binance Charity

BNB is also used to donate to charity programs through the Binance Charity platform.

Pay

BNB is also used as a currency to pay for products and services at stores that accept BNB. 

Binance Smart Chain

One of the biggest functions and huge growth for BNB is its use in the Binance Smart Chain ecosystem. 

• BNB is used to pay transaction fees and is the native coin of the entire BSC ecosystem.
• BNB has been applied in the entire DeFi ecosystem of Binance Smart Chain, with Dapps in many different fields such as: DEX using AMM model, Lending & Borrowing ...

For example , BNB is the main asset in liquidity pairs available on PancakeSwap , used as collateral in the Lending & Borrowing platform, and used for payments in Binance's NFT Marketplace .

Where to buy BNB?

Investors can buy BNB on exchanges like Binance, Huobi, Gate.io, FTX…

Where to store BNB?

Investors can store BNB on the exchanges listed above, or storage wallets that support the BSC network such as Trust Wallet, MetaMask , etc.

Potential of BNB

BNB is backed by the largest and most reputable exchange in the cryptocurrency market – Binance. Besides, this coin is applied in the entire Binance Smart Chain ecosystem and soon MetaFi . 

In addition, BSC's DeFi ecosystem has grown strongly when fully gathering the necessary pieces and continuously developing other areas. Not only that, the performance of this ecosystem is extremely good, with TVL having achieved impressive numbers. This will contribute to a variety of use cases for BNB. If this ecosystem continues to promote its strengths and attract more “skin in the game” investors in BSC, the demand for BNB will increase, helping the value of this coin also increase. according to.  

Although, BNB has dropped about 56% since the ATH setup at $689 and is currently trading at $303 (May 11, 2022). However, the BNB price has increased by 202,000% since the ICO price ($0.15). 

On the other hand, the cryptocurrency market is in a recession and shows no signs of stopping. Therefore, if investors want to buy and hoard BNB, they need to wait for the market to stabilize again and show signs of reversing the downtrend at the moment. 

summary

Above is the basic information about the Binance Coin of the Binance exchange and the Binance Smart Chain ecosystem. Through the above analysis, we can see that Binance has a certain position in the cryptocurrency market. Besides, BNB is one of the few coins with the most use cases in the DeFi space. 

If in the near future, the market shows signs of recovery, then BNB can be one of the coins that deserve to be in the long-term investment portfolio of most investors. However, any investment has risks, so investors need to do thorough research before investing in any coin/token and BNB is no exception.

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