Binance Coin (BNB) Uses, Support, and Market Cap
The cryptocurrency Binance Coin, which trades under the symbol BNB, is a product of Binance Exchange. As of August 2023, Binance Exchange is the largest cryptocurrency exchange in the world, with a volume of $6.7 billion.
Understanding Binance Coin (BNB)
Binance coin initially ran on the Ethereum blockchain with the ERC 20 standard but has since become the native coin of the Binance chain. It was launched during an initial coin offering (ICO) in July 2017 and has a strict maximum of 200 million BNB tokens.4 It offered 10%, or 20 million, BNB tokens to angel investors, 40%, or 80 million, tokens to the founding team, and the remaining 50%, or 100 million, to the various participants through the ICO process.
Almost half of the funds raised during the ICO were intended for Binance branding and marketing. In contrast, around one-third was used to build the Binance platform and perform necessary upgrades to the Binance ecosystem.
BNB was initially based on the Ethereum network but is now the native currency of Binance’s blockchain, the Binance chain.
Binance Coin Burning
Although 100 million Binance tokens were initially offered in the ICO, the current total supply is lower. Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy, or “burn,” Binance coins held in its treasury.
Binance has regularly performed these burning events. The latest BNB burn came on April 14, 2023, when Binance burned 2,020,132.25 BNB, equivalent to USD 676,744,304 tokens. It is Binance’s 23rd quarterly BNB burn and one of the largest ever in U.S. dollars.
Binance Coin Uses and Support
Binance was created as a utility token for discounted trading fees in 2017. But since then, its uses have expanded to numerous platform applications. It is used to pay transaction fees on Binance.com, Binance DEX, and Binance Chain.
It can also be used for payments (at places like Crypto.com, Monetha, and HTC); to book travel accommodations (at sites such as TravelbyBit, Trip.io, and Travala.com); for entertainment purposes (virtual gifts, card packs, lotteries); to pay for online services (BitTorrent, Canva, Storm); and even for financial purposes (taking out a loan at ETHLend or making investments at Moeda).8
Binance Smart Chain
As of August 15, 2023, the Binance Smart Chain was processing as much as 3.9 million daily transactions—triple the amount of Ethereum’s all-time high in daily transactions—but down from a record of almost 16 million daily transactions reached in November of 2021.910
One can also use Binance coins to invest in certain ICOs listed through Binance’s Launchpad program. New cryptocurrencies are listed on the Binance exchange, and Binance provides a seamless marketplace for trading in various established and new virtual tokens.
In 2017, the crypto token garnered support from other partnerships, which has helped its usage spread. It includes a partnership with Asia’s premier high-end live video streaming platform, Uplive, which sells virtual gifts for BNB tokens to Uplive’s 20 million-strong user base.11
The platform, the mobile app, and the VISA debit card of Monaco, the pioneering payments and cryptocurrency platform, also support Binance Coin.
What is the BNB coin?
BNB Coin is a cryptocurrency used primarily to pay transaction and trading fees on the Binance exchange.
What is the BNB coin used for?
Beyond the Binance exchange, Binance Coin has several uses, including the ability to:
- Make credit card payments
- Pay for travel arrangements (on select websites)
- Buy virtual gifts
- Process payments
- Make investments
- Make loans and transfers.
- Donate to charity
What Does Convert to BNB Mean?
In the cryptocurrency world, dust refers to any amount of coins or tokens that are so small they’re often ignored. They’re the tiny fractions left from trades.
Binance allows traders to convert their dust into BNB.
What is a BNB market?
The BNB market refers to where BNB is bought and sold. Most purchases of BNB take place on the secondary market.
Is Binance banned in the U.S.?
Binance is not banned in the U.S. However, on May 13, 2021, Bloomberg reported that Binance Holdings was under investigation by the Justice Department and Internal Revenue Service. According to the report, laundering and tax sleuths have probed individuals with insight into Binance’s business.
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” Binance spokeswoman Jessica Jung said. “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”
Conclusion
- Binance Coin is the cryptocurrency the Binance exchange issues and trades with the BNB symbol.
- BNB was initially based on the Ethereum network but is now the native currency of Binance’s blockchain, the Binance chain.
- Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy, or “burn,” Binance coins held in its treasury.
- Binance was created as a utility token for discounted trading fees in 2017. Still, its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
- At the time of writing, Binance Coin had a market cap of more than $36 billion and ranks behind only Bitcoin, Ethereum, and USD Tether in terms of market cap.
