The symbol for the cryptocurrency known as Binance coin (abbreviated BNB) is given by the Binance exchange. There are only 200 million BNB tokens available for this currency, which utilises the common ERC 20 protocol and is run on the Ethereum blockchain.

Overview of Binance Coin

The Binance chain’s native token, Binance currency was initially built on the Ethereum blockchain and adhered to the ERC 20 standard. With a cap of 200 million BNB tokens, it was introduced in July 2017 as a component of an initial coin offering (ICO).

It distributed 10%, or 20 million BNB tokens, through the ICO process to angel investors, 40%, or 80 million tokens, to the founding team, and the remaining 50%, or 100 million tokens, to other players.

The majority of the money raised during the ICO was used to develop the Binance platform and make critical improvements to the Binance ecosystem, with the remaining one-third going towards branding and marketing for Binance.  Binance’s own blockchain, the Binance chain, which was initially built on the Ethereum network, uses BNB as its native currency.

Binance Coin Burning

Although 100 million Binance tokens were made available during the original ICO, the actual supply is less. Every quarter, Binance burns, or repurchases and destroys tokens that are kept in its treasury, spending one-fifth of its income in the process.

Binance has routinely conducted these fire events. On October 18, 2021, Binance conducted its 17th quarterly BNB token burn, burning a sum of 1,335,888 BNB (roughly $639,462,868 equivalent).

The business grew to be the largest in terms of dollars during Binance’s 15th quarterly BNB burn.

Use and Support for Binance Coin

In 2017, Binance was established as a utility token with reduced trading costs. But ever since, it has been applied to a wide range of platforms and uses. It is employed to cover transaction costs for Binance.com, Binance DEX, and Binance Chain.

Additionally, it can be used to make purchases (at websites like Crypto.com, Monetha, and HTC), to reserve lodging while travelling (at websites like TravelbyBit, Trip.io, and Travala.com), to have fun (with virtual presents, card packs, and lotteries), and to pay for online services. (BitTorrent, Canva, and Storm).

Even money transactions can be made using it (on websites like Crypto.com, Monetha, and HTC). (take out a loan at ETHLend or make investments at Moeda).

Additionally, some ICOs featured on Binance’s Launchpad programme can be purchased with Binance coins. Binance is a user-friendly exchange where a variety of well-known and emerging virtual currencies can be traded. The Binance exchange is where new cryptocurrencies list, and it offers a convenient dealing platform for a variety of well-known and emerging virtual tokens.

The cryptocurrency token has received support from other partnerships, which has aided in its ascent. It also has a partnership with Uplive, the top live video streaming service in Asia, which gives virtual gifts to Uplive’s 20 million customers in return for BNB tokens.

Applications of Binance Coin

Like other emerging cryptocurrencies, the Binance Coin has a number of uses outside of the Binance market, such as:

1.    Trading

Depending on the exchange’s restrictions, Binance Coins can be exchanged for a number of cryptocurrencies.

2.    Binance Exchange Transaction Fees

Users get a discount for using BNB to pay for purchases on the Binance Exchange.

3.    Payments via Credit Card

BNB can be used to settle crypto credit card debts on Crypto.com.

4.    Payment Processing

Businesses that take BNB as payment provide customers with more options for payment methods.

5.    Travel Arrangements

BNB can be used to reserve hotels and flights on some services.

Final Thoughts

Binance Coin (BNB) is a cryptocurrency that has multiple uses within the Binance ecosystem. It can be used to invest in specific initial coin offerings (ICOs) that are listed on Binance’s launchpad program, as well as providing a smooth marketplace for trading a range of virtual tokens. Binance aims to eventually make BNB the core currency of its decentralized exchange. Binance Coin is also supported by various platforms and mobile apps, including Monaco, a pioneering payments and cryptocurrency platform, and its VISA debit card.