Binance Coin (BNB) is an ERC20 token issued on the Ethereum blockchain by the popular cryptocurrency exchange Binance. With this cryptocurrency, you can pay a сommission for transactions on the exchange. And if you decide to do so, you will receive additional discounts. In the first year, you will be able to get a discount – 50%, in the second – 25%, in the third – 12.5%, in the fourth – 6.75%. The token was established with a total supply of 200 million. As per the Whitepaper, Binance plans to use 20% of the profits each Quarter to buyback and burn BNB, until 50% of the total BNB supply (100 million) is burned.
The BNB token allows you to receive discounts on the services of the Binance platform – a cryptocurrency exchange, which in the future will become a decentralized exchange of blockchain assets. BNB also provides users with access to advanced features to be used on the new decentralized exchange.
Binance Coin Review
The BNB token itself has multiple forms of utility, essentially being the underlying gas that powers the Binance Ecosystem. The current most prominent use cases include using BNB to:
- Pay for trading fees on the exchange, obtaining the equivalent of a 50% discount on trades (during the first year).
- Monaco has included support for Binance’s BNB token to its platform which includes the Monaco Visa Card and mobile app.
- Uplive platform supports BNB to buy virtual gifts.
In the future, Binance will build a decentralized exchange, where BNB will be used as one of the key base assets as well as gas to be spent.
How to buy Binance Coin
As the BNB token is created exclusively as a digital tool that provides a discount for users of the Binance exchange, it is logical that it can be bought only there. At this point, cryptocurrency BNB traded in pairs with 40 cryptocurrencies of Binance exchange.
Given the increase in the number of traders on the exchange Binance, we can assume that the cost of BNB will continue to grow. And to promote the growth of the cost of tokens, there will be a special policy of the company, which will buy tokens and burn them. The developers plan to leave only 100 000 tokens, and the rest will be burned within a few years. All these factors will contribute to the fact that the cost of the BNB token by the middle of 2018 will be several times higher than the current one.
Binance Coin Price (BNB)
The Bitcoin Wiki provides a relevant Binance Coin price and market capitalization of BNB in USD: