What Is Binance Coin (BNB)?
Binance is a well-known exchange even for those who have never dealt with cryptocurrency trading. But not everyone knows that this exchange has its own token called Binance Coin BNB, and its cost depends on the popularity of the exchange itself. Let us tell you what Binance Coin is, why it is worth the attention of those who are curious about cryptocurrency trading, what wallets are suitable for storing this coin, and what are the prospects of BNB.
Although Binance Coin BNB is the token of the same-name crypto exchange, it can be used like Bitcoin or anyone else altcoin for being exchanged for any other assets. It is a token which originally used Ethereum blockchain, but later BNB switched to Binance Chain. On its platform, BNB performs three major functions : considered as a trading asset; used to reduce commission; perfect for paying for goods presented on platforms that accept Binance Coin BNB. The second function has time limits: Binance Coin can be used to reduce commissions only during the first four years after the launch of the cryptocurrency, i.e. until 2022. In addition, the discount decreases every year: 50% for the first year, 25% for the second year, 12.5% for the third year, and 6.75% for the fourth year.
BNB's Pros And Cons
Binance Coin is traded in pairs with more than 400 coins, making it one of the most liquid ones.
Planned decrease in supply
The Binance exchange team protects the coin from inflation and does the best for the price growth in the long term.
Those who have Binance Coin in their wallets can open and close deals on the exchange with a lower commission.
Binance and its founder Changpeng Zhao are in good standing. Now, this is one of the key conditions for the success and longevity of any crypto project.
Most sites accept Binance Coin BNB
Large concentration of Binance Coin BNB in the hands of its founders (at least 40% of the total supply). This is a potential possibility for manipulating the price of Binance Coin for some company's purposes.
The Background Of BNB
We would have neither Binance exchange, nor its cryptocurrency if the founder of the project, a Chinese IT specialist Changpeng Zhao, failed to overcome a chain of obstacles. In 2014, he became interested in Bitcoin and realized very soon, that the cryptocurrency field is a true goldmine. Changpeng Zhao sold his house to invest in Bitcoin. At that time, BTC was traded for approximately $600 per coin. But by the beginning of 2015, the price dropped to $150. The Chinese IT specialist decided not to get rid of the assets and in 2017, when he was a multi-billionaire according to Forbes, Changpeng opened his own centralized exchange called Binance. The BNB token is a kind of digital fuel powering the Binance ecosystem. The coin makes it possible to save fee money and can be easily exchanged for any other asset. Holders of Binance Coin can earn more money just for storing the coins in their wallet. Besides, trading BNB on other exchanges is a good deal too.