I will delight you again today with a new episode of the mini-series Top 100 crypto-currencies. You can check my previous four episodes also below:
Newbie Quest: Understanding Stellar Lumens (XLM)
Newbie Quest: Understanding Uni(corns)
Newbie Quest: Understanding USD Coin (USDC)
Newbie Quest: Understanding Chainlink (LINK)
This post is about Binance Coin or BNB.
Binance Coin was launched by the Binance exchange in 2017. BNB has been launched with only 11 days before the official launch of Binance.
The developers initially used the Ethereum blockchain technology. This means that the coins were made as an ERC-20 token. At the time of the launch, the total supply was 200 millions BNB, from which 100 millions BNB were offered in the ICO. Do you remember what ICO is from my previous post?
An Initial Public Offering is
is a means of crowd-funding, through the creation and sale of a digital coin or token to fund project development.
In order to understand the features of ICOs, it will be more pronounced to compare it with something similar in the financial market, called an Initial Public Offering (IPO).
IPO refers to the public sale of the shares of a company for the first time, with the purpose of collecting funds for business expansion and development.
Let’s look at the differences between a crypto-currency ICO and a stock IPO.
The idea is that in April 2017, BNB developers changed the blockchain, leaving behind the Ethereum network and instead using their own Blockchain, Binance blockchain.
Broadly, is easy to understand the use of BNB. Binance Coin can be used on Binance so that users can pay some fees with a discount of almost 70%, it I got it right. Moreover, BNB can be used when a new project is launched on the Binance Launchpad: a new coin, for example.
What is Binance Launchpad?
When a project is accepted within the Launchpad, the project has the backing of the world’s largest crypto exchange offering the initial issuing of its tokens. Issuance is based on a similar and improved version to the previously hyped-ICO (initial coin offering) model. This time, however, and most significantly for investors, Binance Launchpad must evaluate and approve a project before its listing. Binance refers to this as its IEO model (initial exchange offering). Applications are open to submit a project to Binance Launchpad now for any developer or project manager looking for the largest token issuance service in crypto.
BNB cannot be mined. It is not very complicated to understand, but BNB is a coin that is used in Binance's own ecosystem.
Some numbers about Binance
BNB is not on the 10th place on the Market Rank.
BNB had a fairly slow but sure growth.
Currently, Binance developers also changed the Max Supply from the initial 200 millions to approximately 170 millions.
Now, there is a Circulating Supply of 154.532.785 BNB.
The Binance Coin Market Cap is almost $6.5 billions and its current value.
The Trading volume is almost $500 millions currently.
The All Time High was on the 19th of January 2021, when BNB's price was $47,10 and the All Time Low happened on the 1st of August 2017 when one BNB was worth $0,09.
Binance is an exchanged used by millions of people around the world. Furthermore, is a complex exchange, but easy to use, that offers to the users everything.
Broadly speaking, this is the story of BNB, as I understood it. It is a pure utility token, meaning its role is to help people participate in the launch of other currencies and reduce their trading costs on the Binance platform. I don't think I can say much more about this token, which is very simple.
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