The Binance Coin (BNB) is a powerful token and the cryptocurrency that is the driving force behind the most popular exchange: Binance. As the native in-house currency of the most heavily used exchange, the Binance Coin is widely used by traders across the world.
- Strong use case as the native cryptocurrency of Binance universe
- Regular burn mechanism that helps to reduce supply
- Attractive fee discounts if BNB is used to pay trading fees on Binance
- Can be used to pay for goods and services (payment currency)
- Generation of passive income by holding BNB in the vault of Binance wallet
- Access to exclusive ICOs on Binance launchpad and airdrops
- Binance has been subjected to regulatory scrutiny in many jurisdictions
- Half the supply was issued to founders
Binance (BNB) in a nutshell
Purchasing and holding BNB can result in many positive benefits for its users such as discounts on trading fees, access to the vault, ICOs, airdrops, and generation of passive income. The BNB cryptocurrency is used on the Binance exchange, the Binance decentralized exchange (DEX) and is also used while running transactions on the Binance Smart Chain (BSC network).
The Binance exchange provides a BNB marketplace where the cryptocurrency is paired against most currencies traded on its platform. The crypto dust (small amounts of leftover crypto tokens) generated during trading can be easily converted to BNB if the user decides to do so.
The Binance Coin was initially released as an Ethereum-based currency but gradually shifted to its own chain known as the Binance Chain. A further Binance Smart Chain was added and today, the BNB coin is available as an Ethereum-based coin: ERC20, on the Binance Chain: BEP2, and the Binance Smart Chain: BEP20. It is supported by the most popular wallets including Metamask. The Binance chain serves as a mother network like Ethereum and Neo and can be used to deploy and run tokens. The Binance Chain network has emerged as a strong competitor to the Ethereum network.
Tokenomics of BNB
The initial total supply of BNB was 200M* tokens but the supply has reduced due to the regular burn mechanism introduced by Binance. The current total supply of BNB is 168,137,035.
50% – ICO
40% – Founding Team
10% – Angel Investors
*Binance burns one-fifth of the total supply through a buyback and burns mechanism. This further helps to push prices and makes BNB an attractive asset. A total of 100M BNB were offered in the initial ICO.
Has Binance Coin been audited and doxxed?
Yes. BNB was audited by CERTIK and has been doxxed. Binance publishes regular documentation via press releases and the source docs are also available publicly on platforms such as GitHub.
Trust & Fairness: 4
Exchanges & Swaps: 5
Overall Rating: 4.5
Detailed Review of Binance Coin (BNB)
The Binance Coin (BNB) is perhaps the strongest of all exchange coins currently available. Exchange coins are always an attractive investment bet since they are well integrated into the trading system and provide discounts as well as exclusive access to certain VIP schemes. Since Binance has a very good revenue model, it can invest in making its exchange better and can ensure that it is powered by superior technology.
The BNB token automatically benefits if the Binance exchange prospers in the long run. At altcoin reviews, we provide you with actionable insight for various coins which you could use to supplement your own research. The facts are well researched and verified before they are published on altcoin reviews.
The BNB cryptocurrency is also subjected to a burn mechanism where the Binance exchange purchases tokens through a buyback program and deletes them from the record, forever. This help in reducing the total supply of coins and helps in ensuring that there aren’t too many tokens and the price of one coin can therefore hit the roof in the long run.
Let’s talk about some numbers. The price of one BNB was $38.14 on December 30, 2020. It is currently trading at $579.40 at the time of writing. These are gigantic returns and very few assets can provide such attractive returns in such a short period of time. The BNB cryptocurrency truly reflects the power of blockchain technology and early adopters have gained handsome returns from their investments.
Binance (BNB) FAQ
Where to Buy BNB?
Since the Binance Coin is a popular cryptocurrency and has managed to stay in the top ten list of cryptos by market cap for a long time, it is widely available for trading on most exchanges.
You can buy BNB either through cash via P2P (peer-to-peer), credit or debit cards, or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase BNB directly through a decentralized exchange such as Pancake Swap. All you need to do is connect your wallet such as Metamask and select the appropriate coin pair that you wish to use for purchasing BNB (for example BTC/BNB or ETH/BNB). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing the Binance Coin. You can also use the Binance coin for purchasing other altcoins through the decentralized route as explained above.
Some popular decentralized exchanges include Uniswap, PancakeSwap, and SushiSwap. You could also use the native decentralized exchange offered by Binance which is known as the Binance DEX.
What Can you do With the Binance Coin?
Hodl as a long-term investor: As explained earlier, BNB has a diminishing supply model, and the fewer the coins, the more the price will be in the future. You could simply hodl it and gain from its price appreciation in the long term.
Use BNB as a currency: You can use the Binance Coin to settle your credit card bills or pay for various goods and services. While many people look towards cryptocurrencies as assets, they are also primarily built for payment purposes. The Binance coin is supported by many payment networks including NOWPayments, XPOS (PundiX), and Monetha.
You can also use BNB to pay while traveling as the coin is supported by Travala.com, Trip.io, and TravelbyBit, or transfer some funds to friends and family using the ADAMANT messenger. BNB is also supported on Axie Infinity, Gifto, Decentraland, and BNB-Lotto.
You could hire freelancers using Canya and pay using BNB or use it on BitTorrent. CenterServ, a cloud service provider has also integrated BNB as a payment mechanism.
Lend BNB: BNB is supported by ETHLend, Nexo, and LNDR where you can use the Binance Coin as collateral and take loans or offer loans to other parties.
Swap BNB to other BEP20 tokens: You can use BNB and directly swap to other Binance chain tokens or altcoins on a decentralized exchange. The process is quick and simple and is described below.
How to Swap BNB to other altcoins?
Simply head over to a decentralized exchange such as PancakeSwap or Binance DEX and connect your wallet. Then, select the amount of BNB you wish to spend (factoring in transaction fees) and swap it for another crypto token. You will receive the tokens in the same wallet.
In conclusion, the Binance Coin could continue its dominance as the native currency of the Binance exchange. The price will likely see more appreciation as the regular burn is carried out and more services integrate the BNB token as a payment currency. The Binance exchange has reiterated its resolve to work with financial authorities and seek regulatory approval in countries. As cryptocurrencies go mainstream, the Binance Coin will see more demand and adoption from institutional investors.
Binance Coin BNB Price
You can check the current pricing of Binance coins from CoinMarketCap, CoinGecko, or all major exchanges. Link is available below.