This article covers the following:
- What is Binance Coin?
- How is BNB different from others?
- What is the Binance Coin burn?
- What’s in store for Binance Coin?
Binance Coin (BNB) is primarily used for payment of fees when trading other cryptocurrencies and is the native token powering the Binance Chain.
Binance Coin is an exchange-based token created and issued by Binance, which is known as a dominant cryptocurrency exchange. The token was initially created on the Ethereum blockchain in July 2017. BNB only migrated over to Binance Chain in February 2019.
In its exchange platform, it is able to grant traders discounts and rebates over using other payment methods.
BNB is a coin whose value rises as the demand for it increases. Being backed by Binance – an exchange that brings with it millions of users – contributes to its continued rising adoption.
This exchange-based token is unlike most cryptocurrencies in two important aspects.
Firstly, Binance Coin is centralised. Secondly, its network is also secured by validating blocks through a consensus mechanism, instead of the more popular mining.
Binance Coin (BNB) is supported on Coinhako and our users can buy BNB with fiat currencies available in their account or with other cryptocurrencies that are supported in their country of residence.
Coin burning is the process of removing coins from circulation, effectively reducing the total supply.
Binance Coin is designed with a token burn in mind, to drive up the token’s value through scarcity.
In its 2019 whitepaper, it is mentioned that the BNB burns will be based on Binance’s trading volume. The amount of BNB coins that are burned is based on the number of trades performed on the exchange after each quarter. The price of the coin will be affected every time this occurs.
To find out more about Binance coin burning, read here.
As of this writing, it has a circulating supply of 145 Million coins out of the max supply that is 180 Million coins.
You can view Binance Coin's Whitepaper to learn more about the digital currency
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All opinions expressed here by Coinhako.com are intended for educational purposes, taken from the research and experiences of the writers of the platform, and should not be taken as investment or financial advice.