Binance comes to mind whenever a crypto investor looks for ways to either search for the coin or wishes to invest in the digital asset of his choice. Over a period of time, Binance has successfully established itself as a leading cryptocurrency exchange in the world. It has successfully launched Binance coin (BNB) and Binance Smart Chain (BSC) as part of its expanding infrastructure. Let’s dive in and explore the potential of Binance and Binance coin.
Watch the complete video on Binance BNB coin –
What is Binance?
Founded in 2017 by Changpeng Zhao, Binance is the largest cryptocurrency exchange in the world in terms of the daily trading volume of digital assets i.e cryptocurrencies. Binance was a Chinese company before shifting its headquarters out of China because of the Chinese government negative stand on Cryptocurrencies especially Bitcoin. It is now registered in the Cayman Islands as a legal cryptocurrency exchange for trading cryptocurrencies.
Binance has acquired Wazirx in 2019, a leading cryptocurrency exchange in India.
What is Binance Coin (BNB)?
Binance Coin (BNB) is the native token of Binance exchange, it allows the user to pay less fee when they transact on the Binance exchange. It was created in 2017 as an ERC20 token built on Ethereum blockchain. In the year 2020, BNB was moved from Ethereum network to Binance Smart Chain (BSC).
Binance Coin was launched to attract users to the platform and help increase the daily transactional volume by offering discounts. However, the scope of BNB coin has surpassed its use case and now it is used as a medium of exchange in various areas like travel bookings, entertainment, online services etc. I will discuss the use case later in the post.
Total supply of Binance Coin is limited to 200 Million
What is Binance Smart Chain?
Binance Smart Chain is the blockchain built by Binance as an alternative to Ethereum network. Just like Ethereum, it is equipped with smart contracts with a core focus on creating a DeFi (Decentralized Finance) ecosystem. The announcement of Binance Smart Chain took place in September 2020 but it was launched later in April.
After observing the issues with Ethereum that led to network congestion, slow transaction speed and high gas fee. Binance was quick to jump on the opportunity by launching BSC, The sole purpose of creating BSC is to develop a DeFi ecosystem. Binance Smart Chain works on the Proof of Stake and Proof of Authority consensus mechanism.
Binance Coin ICO:
Binance Coin ICO (Initial Coin Offering) took place during its launch in 2017. The tokens were distributed as per the said breakup shared below –
|10% (20 Million BNB)
|BNB Core team
|40% (80 Million BNB)
|50% (100 Million BNB)
The ICO was launched at a price of 15 cents per token. Binance generated USD 15 Million of funds from the token sale to the public. The majority of the funds was used to spread Binance reach via marketing, branding and promotions.
Binance Coin Burning:
Burning is the planned process of destroying the supply of coins in circulation. The practice helps to hedge the inflation and ensures the supply remain finite, making it scarce and much more valuable with time.
Binance coin burning is pretty much straightforward. Every quarter Binance uses part of its profit to buy back and burn Binance coins. Binance is on schedule and consistently burning Binance coin until it buyback and destroy a total of 100 million BNB tokens in circulation, which comprise 50% of its total supply.
Binance Coin Advantages:
Binance coin is used as a tradeable asset. Apart from transaction discounts, it is also used as an asset that can be traded on the exchange to buy other cryptocurrencies.
Chiliz Coin is it’s native BEP-20 token
BNB is a discount token that is used to pay for transaction fees on all Binance platforms i.e Binance exchange, Binance DEX and Binance Smart Chain.
Medium of Exchange:
Binance has turned into a currency by being included as a method of payment on leading services like travel bookings, buying virtual gifts and collateral for loans in financial services.
Websites like Trip.io and Travala.com accepts BNB to book flights and hotel bookings. Moreover, it is also used by online services like Canva, BitTorrent as a mode of payment to avail their services.
Crypto.com uses BNB to accepts payments on its exchange
Store of Value:
During the last bull run, Binance coin was able to occupy the number 3 spot on the list of top 10 coins by market cap. It has seen a meteoric rise in value post the increase in use case and demand. It’s an investor’s favourite cryptocurrency which makes it an attractive asset and hence a store of value.
Binance Coin Price:
Check the latest Binance Coin Price –
Binance Coin Price Prediction:
Binance coin rode the wave of the last bull run and claimed the number 3 spot in Marketcap rankings, just behind Bitcoin and Ethereum. It has hit an all-time high of $686 in the last bull run followed by the crash landing to $212 in the recent market crash.
Binance coin is powered by Binance and its growth totally depends on the success of Binance ecosystem – Binance.com, Binance DEX and Binance Smart Chain. Binance have faced regulatory issues from time to time but this haven’t stopped it from becoming the number one crypto exchange in the world.
Clearly, Binance is riding on high trust and faster operations. There’s no serious competition in the hindsight. However, Binance DEX and Binance Smart Chain have a lot to prove especially after ETH2.0 upgrade and after upcoming projects like Uniswap Exchange (UNI), Polkadot (DOT) and Solana (SOL). Keeping things in perspective, it’s pretty obvious Binance have a big plan in mind and it will put all it’s efforts to push Binance coin to new highs.
Having said that, I wouldn’t be surprised if it hit $1000 in the next bull run, which seems pretty obvious. However, be wary of its volatility, a sudden lawsuit or market crash has the same power to pull down it’s value below $100.
Where to buy Binance Coin?
Binance Coin can be easily bought from the leading cryptocurrency exchanges like Binance, Coinbase, Poloniex etc. Pancakeswap Crypto DEX built on Binance Smart Chain is another option to purchase BNB without the need for registration.
Indian users can buy Binance coin on Wazirx by creating an account and verifying KYC documents. Do remember to checkout WazirX WRX coin, a native token of WazirX exchange serving the similar purpose as served by BNB on its exchange.
Meme coin, Shiba Inu is listed on the Binance exchange
Is Binance Coin worth investing?
Binance coin is on the few coins that was created with a crystal clear use case. Transact using BNB and get a trading discount was its initial scope of work. However, the scope of the coin has expanded to the level of it’s adoption as a form of digital currency. Moreover, Binance coin is not only restricted to Binance exchange, it plays a pivotal role in Binance DEX and Binance Smart Chain.
The only bottleneck in Binance coin is Binance itself. Any positive or negative news on Binance has the potential to highly impact BNB price level. If you’re a price-sensitive investor, BNB can give you shockwave. Overall, the outlook is positive. I suggest investing a portion in BNB (only invest which you can afford to lose), keeping the volatility in mind.
This completes my review on Binance Coin. In the next post, I will cover Crypto.com CRO coin and Ethereum Classic. Remember to do your research before investing in cryptocurrency markets. Please share the post and educate your fellow friends. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.