What Is Binance Coin (BNB)?
Binance Coin (BNB) is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. As of June 2023, Binance Exchange is the largest cryptocurrency exchange in the world, with a volume of $8.3 billion. Binance coin initially ran on the Ethereum blockchain with 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. 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 the funds raised during the ICO process were intended to be used for Binance branding and marketing, while around one-third were 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 own blockchain, the Binance chain.
What is BNB 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 15, 2021, when Binance burned a total of 1,099,888 BNB, equivalent to $595,314,380 USD worth of tokens. It is Binance's 15th quarterly BNB burn and its largest ever in terms of U.S. dollars. The total supply of BNB has decreased from 170,532,825 to 169,432,937.
Uses of BNB
Binance was created as a utility token for discounted trading fees in 2017. But since then, its uses have expanded to numerous applications on a wide number of platforms. It is used to pay for 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 (take out a loan at ETHLend or make investments at Moeda). One can also use Binance coins to invest in certain ICOs that are listed through Binance’s Launchpad program. New cryptocurrencies list on the Binance exchange, and the use of Binance provides a seamless marketplace for trading in a variety of established and new virtual tokens. The crypto token has 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. Binance coin is also supported by the platform, the mobile app, and the VISA debit card of Monaco, the pioneering payments and cryptocurrency platform.
Relationship between BNB and US
Binance is not banned in the U.S. However, on May 13, 2021, Bloomberg reported that Binance Holdings is under investigation by the Justice Department and Internal Revenue Service.6 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.
- Free images from Unsplash
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