The live BNB price today is $578.50 USD with a 24-hour trading volume of $1,923,493,017 USD. The current CoinMarketCap ranking is #4, with a live market cap of $84,424,007,225 USD. Launched in July 2017, Binance is the biggest cryptocurrency exchange globally based on daily trading volume. Binance aims to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind Binance’s name is to show this new paradigm in global finance — Binary Finance, or Binance. Binance conducts quarterly burning of the BNB supply, with the goal of reducing the total supply by half — or 100,000,000 BNB.
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- She started her career as a TV anchor and presenter on China Travel TV in 2012.
- In the second and third phases, that rate was reduced to 2,500 and 2,300, respectively.
- The comments, opinions, and analyses expressed on Investopedia are for informational purposes only.
- Later, in 2014, Yi co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time.
- Whether or not BNB is a good investment depends on your investing goals.
- With various applications both within the BNB Chain ecosystem and beyond, BNB serves numerous purposes.
A marketplace for cryptocurrencies where users can buy and sell coins. While ERC-20 tokens rely on the proof-of-stake (PoS) consensus, which allows them to be extremely scalable, and allows for the creation of smart contracts. Unlike PoS, the Binance blockchain does not support smart contract functionalities.
An investment of $1,000 during its Initial Coin Offering (ICO) in July 2017 would have multiplied to a massive $4.5 million as of May 2021, when the coin reached its current all-time high. The token sale offered 100,000,000 units of BNB (50% of the total supply). The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB (around 0.11 USD back then).
Binance Coin Burning
In contrast, the Bitcoin blockchain is secured by the proof-of-work (PoW) consensus, which is far more limited and consumes large amounts of electrical and computing power. This has helped Binance overcome several exploits of protocols on BSC, such as a $200M exploit of Pancake Bunny and several hacks of Cream Finance. Despite these hacks, users return to Binance for its low fees and the abundance of lucrative meme coins in its ecosystem. Since 2013, Changpeng Zhao has been actively involved with blockchain technology and cryptocurrencies.
To do that, click on the USD button and select the fiat of your choice from the dropdown list. To the left of that button is a space to fill in the amount of money you wish to spend. In the last stage, you chinese bitcoin mining outfit builds huge data centre 2020 will be required to provide the details of your order, including the number of tokens you wish to buy. Once you provide this information, click on the [Next] button at the bottom of the screen to fill in your credit or debit card details. You want to click on the last one labeled ‘Buy.’ This will open up a new dialog screen to choose the asset you want to buy.
If this is your first time using Binance to buy crypto, you will be required to add a credit or debit card to your account. The tokens will be deposited into your Trust Wallet account as soon as the transaction is processed. Similar to Ethereum’s ERC-20, Binance Chain also has a token issuance and implementation standard code-named BEP-2. The exchange swapped the ERC-20 BNB tokens to the BEP-2 tokens on the same day the mainnet went live.
Binance Coin Uses and Support
On July 18, 2021, it conducted its 16th quarterly burning, which was worth $390 million in BNB price at the time of burning. However, that was not the most expensive burn — on April 16, 2021, the exchange burned nearly $600 million worth, in BNB price at the time of burning. In the case of Binance, the crypto exchange began the program in late 2017 and has so far burned over 38 million tokens via its quarterly burn to date. The crypto exchange has in mind to destroy up to 100 million BNB tokens through its quarterly burns, accounting for 50% of its circulating supply. This guide takes a deep dive into the world of Binance Coin (BNB), the native digital asset of the world’s leading cryptocurrency exchange Binance. We discuss its history, benefits, uses, how to buy and how to store the coin.
How to Buy Binance Coin
Ethereum did a similar thing during their 2014 token sale, but the difference is that with Ethereum, more coins are still getting mined (introduced into circulation) even after the token sale. As the dedicated utility token of the Binance exchange, the most straightforward way to acquire BNB coins would be to purchase them through Binance. The original exchange supports the largest variety of trading pairs with BNB, and it also has the best trading rates for the coin.
Binance coin (BNB) is the exchange token of the Binance crypto exchange. It was launched originally on the Ethereum blockchain but later migrated to the Binance Smart Chain, now called BNB Chain.Holders of BNB with Binance accounts can access discounted fees on the exchange. That means demand for the token is linked to demand for the exchange’s services. Therefore, buying BNB can be seen as a bet on the success of the exchange, in a similar way to buying a share in a company, except that owning the token comes with no ownership rights in the exchange.
There is an initial maximum supply of 200,000,000 BNB coins, of which 168,137,036 are currently in circulation as of September 2021. Therefore, if you trade a lot on Binance, you should consider getting BNB and using them to pay for your fees. Keep in mind that the deduction for trading fees follows a specific schedule, so make sure to check the current spot trading Fee Schedule. It’s also worth noting that the Binance Futures platform follows a slightly different Fee Schedule. One can also use BNB to invest in certain ICOs listed through Binance’s Launchpad program.
However, there was a big possibility that the value of BNB would fall once the discount period expired after 4 years. To counter this undesirable event, Binance adopted the concept of coin burning within their whitepaper, committing to reduce the total BNB supply by 50% or 100 million tokens. Aside from illegal downloading and file sharing icos being the largest cryptocurrency exchange globally, Binance has launched a whole ecosystem of functionalities for its users.
Therefore, the founding team got an 80M token reserve, 20% (16M) of which was to be released immediately after the ICO, and the remaining amount to be released in equal batches of custom app development 16M for four years. You can read more about how to enter the market and how to buy BTC, BNB or any other token in CoinMarketCap education portal — Alexandria. It’s difficult to determine what any asset’s price will be in the future. However, it is possible that BNB will reach $10,000; however, it is just as likely to fall to zero.
Now that you have acquired your BNB tokens, you may be looking for a safe place to store them. Normally, we would recommend storing all your long-term digital asset investments in a hardware wallet such as Trezor or Ledger for increased safety. There are several ways to buy BNB, but most of these are unofficial and sometimes risky.
So far, the exchange has undertaken 16 coin burns resulting in the removal of 31,862,964 BNB tokens from circulation. The fewer coins there are in circulation, the higher their perceived value, which will increase their demand and consequently their price. Binance exchange launched in July 2017, but before the launch, the exchange needed to raise necessary funds to run the business. The Binance team, led by its current CEO Changpeng ‘CZ’ Zhao, conducted an initial coin offering to sell BNB tokens to interested investors. The token was launched in July 2017 to be used as a tool for crowdfunding in the Binance ICO.