In total, 16% of the 200 million coins have been burned so far. After each quarter, Binance performs a BNB burning event destroying the respective quantity of coins.ĭuring the last coin burn in July 2021, 1’296’728 BNB coins with a value of $393’673’654 were destroyed, which amounts to 0.65% of the total coin supply. Binance has committed to burn (destroy) BNB coins every quarter based on the trading volume performed on the Binance exchange within a 3-months period. This is done through a mechanism called ‘Coin Burn’.Ī coin burn is the process of permanently removing coins from circulation, thereby reducing the circulating as well as the total supply. Nevertheless, the founders of Binance and creators of the Binance Coin decided to let BNB holders participate in the success of Binance. Its price is simply based on the supply and demand of the coin, which again is linked to the above listed use cases. Therefore, as long as the Binance product offering retains existing user and DeFi projects as well as attract new ones, the demand for BNB can be expected to remain strong, which allows investors to participate indirectly in the company’s success.Īlthough BNB was launched through an ICO, it does not provide holders with a claim on Binance profits, nor does it represent a stock or investment in Binance. Participating in token sales hosted on the Binance Launchpad.Paying for goods and services for both online and in-store purchases (e.g., using Binance Credit Card or Binance Pay).Transaction fees on the Binance Chain and the Binance Smart Chain.Trading fees on Binance Decentralized Exchange.Today, according to Binance, the Binance Coin has a multitude of uses cases, among which are: This enormous growth is also reflected in the BNB price, which has exploded by 10x since the beginning of the year 2021. In just a year’s time, BSC had overtaken Ethereum in terms of daily transactions by a magnitude of 5x-10x.
Since fees for DeFi applications on Ethereum grew significantly higher than on the Binance Smart Chain, many new DeFi projects launched on BSC. Consequently, its price is now in large parts dependent on the success of these underlying blockchains.Įspecially the launch of the Binance Smart Chain (BSC) in April 2020, which allows for smart contract functionality similar to that of the Ethereum blockchain, proved to be an enormous success. Like Ether for Ethereum, BNB is now the native asset of two interlinked blockchains and has to be spent for every transaction made on these blockchains. Watch the video: Binance: The Creation Of A Crypto Trading PlatformĪfter the launch of their own blockchains, Binance Chain in 2019 and Binance Smart Chain in 2020, BNB now has an additional, fundamentally different use case as gas.
Watch the video: Binance: Enabling Access To All On The Digital Frontier From then on, the BNB coin was Binance Chain’s native cryptocurrency. The other half of the coins were sold to angel investors (10%) or remained with the founding team (40%).Īlthough initially launched on the Ethereum blockchain as an ERC-20 token, in April of 2019 the tokens were swapped on a 1:1 ratio onto the newly launched Binance Chain. The token sale offered 100 million tokens, which represents 50% of the total BNB supply, for a price of around $0.11 USD per coin.
The company was founded in 2017 in Hong Kong, but soon after moved its operations to multiple locations around the world such as Malta and the Cayman Islands in response to China’s tightening regulations on cryptocurrencies.īinance Coin was first launched as a token on the Ethereum blockchain during an initial coin offering (ICO) in July 2017.
The name ‘Binance’ has a simple origin, it is simply a combination of the words ‘Bitcoin’ and ‘Finance’. Binance Coin was created in 2017 by Binance, which is currently the leading cryptocurrency exchange worldwide.
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