Binance Coin (BNB) is quite unique as it was issued by the Binance exchange. BNB is one of the hottest cryptocurrencies currently, ranking in the top 10 cryptocurrencies with the largest market capitalization.
So what is Binance Coin (BNB)? Should you invest in BNB? These are questions that many people entering the cryptocurrency market are asking. In today’s article, let’s explore what is BNB coin with investxz.com, how it works, pros and cons…and other related informations.
What is Binance Coin (BNB)? Review A-Z 2023
What is Binance Coin (BNB)?
- Token Name: Binance Coin
- Ticker: BNB.
- Blockchain: BNB Beacon Chain (BC) and BNB Smart Chain (BSC)
- Token type: Utility, Governance
- Total Supply: 151.702.503 BNB
- Real time price: $ 230.38 (-1.19%)
Binance Coin (BNB) allocation
- 10%, or 20 million BNB, were allocated to angel investors.
- 40%, or 80 million BNB, were reserved for the founding team.
- The remaining 50%, which is equivalent to 100 million BNB, was set aside for various other participants.
The reason for Binance Coin’s favoritism is because Binance is currently a leading exchange, and their BNB cryptocurrency has been used as a base coin for trading alongside markets for Bitcoin (BTC), Ethereum (ETH), and USDT (Tether)… This implies that Binance Coin’s liquidity is extremely high, allowing you to easily buy and sell them at any time.
What is Binance Coin used for?
BNB is integral to the Binance ecosystem, offering multiple uses:
Utility Token: Designed to enhance user engagement with the Binance platform, BNB allows users to enjoy reduced fees for trades, transactions, and listings when they opt to pay with this cryptocurrency.
Dual-Chain Architecture: BNB serves as the cornerstone of the Binance Chain, tailored for swift trading and managing straightforward operations like token transfers. Alongside, the Binance Smart Chain (BSC) operates parallelly, introducing smart contracts and Ethereum Virtual Machine (EVM) compatibility, with BNB covering transaction fees across both networks.
Token Burns: Binance commits part of its earnings to repurchase and “burn” BNB tokens every quarter, which contracts the total supply, potentially elevating the value of the surviving tokens.
Binance Ecosystem Integration: BNB is woven into the fabric of the Binance ecosystem, including the Binance DEX for decentralized trading, the Binance Launchpad for new token introductions, and an array of other Binance-centric offerings.
Broad Applicability: Beyond the Binance realm, BNB finds use in an array of applications, from travel arrangements to entertainment, online services, and finance, with its adoption as a payment method growing among various retailers.
Investment Vehicle: BNB transcends its functional role, representing an investment avenue for many. It experiences the typical trading and value shifts characteristic of cryptocurrencies across different trading platforms.
Decentralized Governance: BNB owners are empowered to vote on governance proposals, shaping the development trajectory and future updates of the Binance Smart Chain’s decentralized framework.
Binance coin (BNB) Pros and Cons
Binance Coin (BNB) is the native cryptocurrency of the Binance exchange, one of the largest cryptocurrency exchanges in the world. Like any asset, BNB has its pros and cons that investors and users consider:
Is Binance Coin (BNB) a scam?
Even though you might understand what Binance Coin is, some still question this issue. We would like to affirm that Binance Coin (BNB) is NOT A SCAM because:
+ With its inception history and the standing of both Binance Coin and the Binance exchange, this currency can be considered extremely reputable. Additionally, Binance is currently a leading cryptocurrency exchange. The quantity and the trading price of BNB are determined by market participants, and Binance does not control these aspects.
+ If you encounter any scam activities related to Binance Coin, it’s likely that they stem from unscrupulous traders who engage in multi-level marketing, taking advantage of those with limited knowledge to misappropriate assets.
What is Binance Coin (BNB) Burn?
If you’re delving into what Binance Coin is, you’ve probably come across the term “coin burn.” Let me explain this to you.
Initially, BNB was issued with a total supply of 200 million tokens, but currently, there are just over 150 million BNB in circulation, lower than the initial total supply. This is due to the periodic BNB burn events. This BNB burning process will continue quarterly until the total BNB supply reaches 100 million Binance coins.
Why is there a need to burn coins?
Burning coins is the process of permanently removing tokens from circulation, preventing them from being traded on the market. By burning coins, the supply is reduced, which theoretically decreases inflation and helps to maintain the value of BNB.
All these coin burn events are recorded as transactions on the blockchain, meaning they are 100% transparent. After a coin burn event, Binance makes an official announcement about the number of BNB that have been burned on their website and Twitter to keep users informed.
Is Binance coin (BNB) a good investment?
If you’ve understood what Binance Coin is, you might be wondering whether or not you should invest in this cryptocurrency. To find an answer, you need to consider two main factors: safety and potential returns.
- Safety: Although the legal status of cryptocurrencies in general is still controversial in many countries, it cannot be denied that the trading, ownership, and application of cryptocurrencies are increasing daily. Moreover, with its high market capitalization, BNB is considered very reliable and safe.
- Potential Returns: This depends on the individual investment strategies of each trader. However, if you look at the performance of BNB over the years, it could be observed that investing in Binance Coin – BNB has significant potential.
Therefore, from the perspective of investxz.com, this is a currency that is very worth considering for investment. However, any investment decision always comes with both opportunities and risks. That’s why you need to take the time to thoroughly research before making a decision.
♦ Binance Coin is a cryptocurrency issued by the Binance exchange and is denoted by BNB.
♦ Initially based on the Ethereum network, BNB is now the native token of BNB Beacon Chain (BC) and BNB Smart Chain (BSC).
♦ Every quarter, Binance repurchases and permanently destroys (burns) BNB to keep the currency from inflating. They typically use one-fifth of their profits to do this.
♦ BNB was created as a utility token to reduce transaction fees in 2017, but its use has expanded to a variety of applications, including transaction fee payments (on Binance Chain, trust wallet), travel bookings, entertainment, online services, and financial services.
♦ At the time of writing, Binance has a market capitalization of over $37 billion, ranking 4th in the market, only behind Bitcoin, Ethereum, and Tether.
The above details the cryptocurrency Binance Coin (BNB). Hopefully, the analysis on investxz.com has helped you understand what is Binance Coin (BNB) and provided you with the most accurate and comprehensive view of this coin. BNB (Binance Coin) is currently the most valuable, famous, and strongest Coin of the exchange today. The strong growth of BNB in just a few years has indicated the potential future development of the BNB. Wishing you a wise investment decision and reaping many profits.